Finance Minister Announces HST Housing Transition Measures for BC - February 2012

Hi All,

Finance Minister, Kevin Falcon, has made public his transition arrangements regarding HST in BC today, so I thought you would like to see the details.

New Housing Transitional Rules

On Feburary 17th, 2012 the Government announced the transitional rules for returning to the PST. Below you will find information as well as the detailed tax information notice on these rules.

The housing transition rules help ensure when people buy a newly constructed home under the PST, whether built entirely under the HST, entirely under the PST, or partly under HST and partly under the PST, they will all pay a consistent and equitable amount of tax. The transition rules provide certainty for new-home construction and sales, particularly during the transition period.



For newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the seven per cent provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of two per cent on the full house price. This ensures equitable treatment among purchasers and will help mitigate distortive market behaviour. Builders will receive temporary housing transition rebates to offset PST on materials to help prevent double-taxation on homebuyers.
  • Average amount of embedded sales tax in newly built homes under PST: two per cent.
  • Tax paid by purchasers on an $850,000-newly built home after HST rebate: two per cent.
  • Tax rate on a newly built home during transition: two per cent.
Kind Regards

Trish Cenci
Tel 250 864 1707
Email trishcenci@shaw.ca

BCREA Housing Market Update Q1 BC Housing Forecast Update (Feb 2012)

Hi All,

The BC Real Estate Association has now published their latest report on the BC Real Estate Market and also gives their views on the latest Forecasts for 2012 & 2013.



Kind Regards
Trish Cenci
Tel 250 864 1707
Email trishcenci@shaw.ca

BCREA Reports Home Sales Rise Outside Lower Mainland

Hi All,

Thought you would like to see that there is better news from BCREA today on housing sales for January 2012.
Vancouver, BC – February 15, 2012. The British Columbia Real Estate Association (BCREA) reports that the dollar volume of homes sold through Multiple Listing Service® (MLS®) in BC dipped 7.6 per cent to $2.1 billion in January compared to the same month last year. A total of 3,976 homes traded hands on the MLS® over the same period, down 3.9 per cent. The average MLS® residential price was 3.8 per cent lower at $527,219 compared to January 2011.
“Increased market activity outside the Lower Mainland in January was offset by fewer sales in Vancouver and the Fraser Valley,” said Cameron Muir, BCREA Chief Economist. MLS® Residential sales rose 7 per cent to 1,620 units outside the Lower Mainland, while declining 10 per cent to 2,356 units in Vancouver and the Fraser Valley.
“While provincial sales activity was down in January from year ago levels, consumer demand has posted modest improvement since last fall, driven by low mortgage interest rates and gradually improving economic conditions,” added Muir.

Kind Regards 
Trish Cenci 
Tel 250 864 1707 
Email trishcenci@shaw.ca