Spring is on the Way…
After a slow start in February (20 residential sales), the Powell River real estate market saw an increase in sales over January (14). This most likely signals the beginning of the Spring Market which promises to be brisk again this year. Recent economic information shows the BC economy as one of the better ones in Canada with improvements in retail sales and in unemployment stats. The low Canadian dollar, while alarming, is good for Canadian exporters like our home town Catalyst paper mill. The February stats in Powell River show new listings still a bit slow at 36 in February, but ‘on the ground’ we’re seeing what looks like sellers starting to come out of hibernation. Prices are rising although, unlike some of the major centers, at a measured pace. Call me if you’re interested in listing or buying a home.
Property Transfer Tax Change…
If you were considering buying a newly constructed home, the BC Government just gave you a $5000 (approx.) tax break on your purchase. As of February 16, the purchase of new homes up to a value of $750,000 will be exempt from the Property Transfer Tax. Most home purchases are subject to a tax of 1% on the first $200,000; 2% of the balance up to and including $2,000,000 and 3% on the balance over $2,000,000. Most of our new homes are in the range of $350,000 which is what I based the dollar value above on.
To qualify for the exemption, you must be an individual and a Canadian citizen or permanent resident. The property (land and improvement) must
- be located in B.C.;
- only be used as your principal residence;
- have a fair market value of $750,000 or less;
- be 0.5 hectares (1.24 acres) or smaller
Partial exemptions for some variations are possible.
In previous articles, I’ve reported that building lot sales are on the rise. In the last year to date, we’ve seen 40 lot sales. In the previous year there were 12. When prices are on the rise, it makes more sense to start a building project with the expectation that by the time the home is built it will have increased in value rather than be stuck with a mortgage and an undervalued home. This increase in sales reflects a growing optimism in the Powell River real estate market. The recent changes in the Property Transfer Tax can only add to that.
New construction puts people to work and puts more money in all sectors of our economy. Call for a free market evaluation if you have a building lot that you’re thinking about selling.
Cranberry Family Home!
- 3 Bedr/2 Bath -1876 sq ft
- Fully updated, double garage
- 67 acre lot; sun deck & hot tub
Call for a showing!
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