Demand for new homes and luxury residences in B.C. could spike when the PST/GST system is re-introduced in March of 2013, said Chief Economist Cameron Muir of the BC Real Estate Association.
Purchasers of new dwellings, and those with a value greater than $ 1 million, might choose to hold off until after the HST’s termination, since they would incur the most cost under the harmonized tax, he explained.
However, Muir emphasized that the tax shift would have a negligible impact on overall real estate demand in the province.
“The vast majority of home sales in the province, about three-quarters of them, are existing homes, which are not subject to the HST,” he said.
Muir believes the cost of related services — like real estate commissions, appraisals and building inspections — typically aren’t significant enough to cause homebuyers to delay a purchase until after the HST’s termination in March 2013.
Local news from metronews.ca/vancouver
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