At present, the Vancouver real estate market is adjusting to the 15% foreign tax on purchasers. However, the market has taken it well. Although sales values are down slightly, and prices down perhaps 3% – 5% on average, product is still selling if priced correctly on quality homes and locations.
CLG firmly believes with builders building less, in prime locations, supply will decrease and demand will increase this spring. The market will make up any decreases very quickly with steady sales & price gains. The lower Canadian dollar will also attract international purchasers.
Locals and “Permanent Residents” are well aware of the present opportunities and they are taking advantage of this occurrence. The rental market is amazingly strong in all regions of Vancouver and area.
Other B.C. regions that are not affected by the 15% foreign tax, are continuing to increase in demand and price. (ie: Squamish, Victoria and Kelowna) These are areas CLG is looking to expand it’s brand name. Kelowna in particular.
With the recent announcements of (2) new pipelines for Alberta, OPECS et al, reduction in the supply of oil and the Keystone pipeline about to be approved; Calgary is basking in some well-deserved optimism (oil price $54. USD today). Great News!! The inner city and CLG product, although decreasing in value last year, is now increasing. Lack of supply in the “infill townhouse” market is now a reality. CLG prices for finished product have increased, with many of our homes now preselling, before completion.
The spring of 2017, in Calgary looks very positive, especially in prime inner city locations, which is CLG’s specialty. Rentals have also been in demand and very steady. Building costs are down due to higher unemployment. Therefore we expect good margins for the spring/summer and fall of 2017.
City Lifestyle Group Ltd.
Dec. 30, 2016