Valley shrugs off spec tax

Photo: Contributed

The B.C. government’s proposed “speculation tax” already appears to be having an effect on housing prices. But the Okanagan is bucking that trend, new stats reveal.

Royal LePage’s newly released Recreational Property Report predicts the average home price in the province will fall by 2.8 per cent by the end of September, to $531,333.

The price drop will happen despite a Canada-wide housing market “primed for healthy growth," with home prices predicted to increase 5.8 per cent year-over-year, to $467,764.

The report, which surveyed hundreds of realtors from across the country, says B.C.’s bucking of the national trend will be primarily because of the provincial government’s proposed speculation tax, “which will take many out-of-province buyers out of the impacted markets.”

The Okanagan doesn't seem to be following the rest of the province, however.

To find out why, check out the full story on Castanet's sister business news website Okanagan Edge.