Vancouver home sales drop as foreign buyers tax bites

Author: Adam Button | Category: News

Canadian dollar could become increasingly sensitive to housing data

The first numbers that show just how bad the foreign-buyers tax in Canada's West coast is hitting are out. Sales fell 26% in August compared to the same month a year earlier. Detached homes fell 44.6%, the the Real Estate Board of Greater Vancouver said Saturday.

It will take a few months to gauge how well the market is coping with the tax.

To my mind, buyers should be able to use Canadian-domiciled corporations to buy so, ultimately, the foreign money will keep rolling in. It may just take a few months to iron out the kinks.

Don't look for any kind of reaction when the market opens for the week. Canadian and US trading is closed Monday for holidays.