I hope your 2023 is off to a great start! The new year has brought some notable policy changes affecting real estate:
– Foreign Buyer Ban: this ban came into effect on January 1st and is intended to be in place for a 2-year period. In short, the ban does not apply to rural areas and all communities with a population of less than 10,000 people. Squamish is included in the ban, while Whistler and Pemberton are not. For further details about this regulation, follow this link: https://www.cmhc-schl.gc.ca/en/media-newsroom/notices/2022/ensuring-housing-owned-canadians
– 3-day Buyer Rescission Period: this policy came into effect on January 3rd, but was conceived over a year ago when the market was rife with subject-free offers. Similar to the pre-existing 7-day rescission period afforded to buyers of pre-sale units, the intent of the policy is to protect buyers from making decisions they will later regret. Buyers will now have 3 business days to back out of their offer, even if they submitted a subject-free offer. If a buyer decides to rescind their offer within the rescission period, they will be required to pay the seller a fee of 0.25% of the negotiated purchase price.
Realtors are working out how to incorporate this into our processes and our documentation has all been updated. For buyers, it’s a great development. For sellers, it adds a layer of complexity and uncertainty that no seller will appreciate. The policy cannot be circumvented. For a helpful video on how the rescission period works, follow this link: https://www.bcrea.bc.ca/practice-tips/video-home-buyer-rescission-period-what-consumers-need-to-know/
– Anti-Flipping Rule: also new in 2023, the federal government has implemented the Anti-Flipping Rule. It stipulates that those who sell their properties within 12 months of purchasing will have the full amount of their profit taxed as business income (i.e. the profit would be added to your taxable income and taxed regularly), rather than being able to either a) claim the profit as a capital gain and get taxed at 50% of your highest tax bracket, or worse yet, b) not be able to claim the profit as stemming from your principal residence and avoiding tax altogether. There are exceptions, so don’t panic if you think this could affect you. For more info, follow this link: https://www.bcrea.bc.ca/advocacy/new-federal-tax-changes/
As for our local markets, Squamish had 20 sales in December, all of which sold for under the asking price. In Whistler, there was 36 sales, of which 86% went for under asking, 8% went for over asking, and 6% went for the asking price. The 36 sales in Whistler is somewhat aligned with the number of sales seen in December in the past 10 years, and could be seen as an improvement in market conditions. Squamish sales volumes are still depressed compared to previous December’s, however good product continues to sell fairly quickly.
It’s a great time to get out and negotiate if you’re thinking of buying. Prices have already come off their peaks quite a bit (nearly 20% in both Squamish and Whistler). We all read the same news, and sentiment changes quickly. Sentiment is still fairly low and it’s possible to negotiate 10-15% off certain product. If/when sentiment changes, that negotiating position evaporates.
If making moves in real estate is part of your 2023 plan, we should connect to strategize and make sure I have your needs on my immediate radar! Always happy to help and I hope you’re finding these newsletters informative.
– Lindsay
For more updates and information, follow me on Instagram @squamish_whistler_real_estate
Call me: 604-612-1484
Email me: lindsay@lindsaymcivorrealestate.com