How does a tax in Vancouver, British Columbia affect housing prices in the Seattle Metro area?
According to Bloomberg, a new tax introduced in August 2016 by the City of Vancouver, BC imposes a 15% tax on foreign investment. In the last decade Vancouver saw single-family home prices double because of the surge of foreign investment. This new tax is to protect the housing demand, and housing prices, in favor of the people who live and work in the city.
To avoid paying the foreign investor tax, many people have begun purchasing real-estate in cities such as Toronto and Seattle. These buyers often pay in cash or cash equivalents for these homes. This pushes upward the demand and prices for single-family homes in the Seattle Metro area.
With demand already increasing in Seattle from transplants from California and other dense areas of the country, and the limiting geography of the Puget Sound region, we will likely see prices continue to rise. But you shouldn’t fear, we have excellent programs for you to purchase the right home for your family. Call us today to find out what programs are available to you.