Brian White

The BCREA Economics Department forecasts that the number of homes changing hands on the Multiple Listing Service® will exceed 100,000 in 2015. That's the third strongest unit sales figure on record and marks the first time since 2007 that BC home sales will exceed the ten-year average.

While sales are expected to decrease somewhat in 2016, the forecast is still strong with an expectation of 93,700 homes. BCREA expects the average MLS® price to reach $626,100 in 2015 and $639,700 in 2016.

All of this bodes well for provincial government coffers. In his Second Quarterly Report in late November, Minister of Finance Mike de Jong reported that revenues from the Property Transfer Tax are expected to be nearly $1.3 billion in the current fiscal year—$350 million higher than the original budget figure in February.

BCREA has been following Minister de Jong's remarks about the PTT with interest, and looks forward to the 2016 provincial budget, which just might include good news for many homebuyers. The Association's concerns with the tax have been on record since 1987, and BCREA recently made the following recommendations:
1. Increase the 1% PTT threshold from $200,000 to $525,000, with 2% applying to the remainder of the fair market value.
2. Index the 1% PTT threshold of $525,000 using the MLS® Home Price Index, and make adjustments annually.

About Brian

"I’m Brian White, Bay Realty and I get you what you really want. I’m innovative, insightful, diligent and direct. With 25 years of experience in realestate and construction practises, my clients enjoy a competitive advantage they won’t get from anyone else and can move forward with complete confidence. Honesty, Dedication and RESULTS! "

December 2, 2015

The Bank of Canada announced this morning that it is maintaining its target for the overnight rate at 0.5 per cent. In the press release accompanying the decision, the Bank noted that inflation is in line with its outlook with total CPI inflation near the bottom of the Bank's 1 to 3 per cent target range while core inflation remains close to 2 per cent.  On growth, the Bank cited ongoing and complex adjustments in the Canadian economy to low commodity prices, but expects growth to move above potential (usually estimated to be about 2 per cent) in 2016. 
 
Absent a substantial recovery in global commodity prices, the Canadian economy will more than likely grow near its long-term trend rate over the next two years. That rate of growth will keep inflation relatively anchored at or below its 2 per cent target.  A baseline scenario of economic growth above 2 per cent, paired with low inflation and steady job growth should keep the Bank of Canada sidelined over the medium run. However, several quarters of steady growth following the oil price shock of late 2014 may convince policymakers that the economy is no longer in need of the monetary stimulus injected into the economy via two rate cuts in early 2015. If so, the Bank may shift back to a tightening bias with a potential rate increase late next year or in early 2017.

For more information, please contact me anytime.  

"I’m Brian White, Bay Realty and I get you what you really want. I’m innovative, insightful, diligent and direct. With 25 years of experience in realestate and construction practises, my clients enjoy a competitive advantage they won’t get from anyone else and can move forward with complete confidence. Honesty, Dedication and RESULTS! "