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We are now halfway through February 2020 and the market still appears to be going quite strong, even after an unusually strong winter.  It seems as if buyers have finally decided to get back into the market, but now it is the sellers who appear to be hesitant on listing their homes.  January 2020’s 1,957 new listings comes in 11% lower than the 10 year average. When this is combined with January 2020 processing 900 sales (6% higher than the 10 year average) we are pushing the market towards yet another seller’s market.

With only 4,352 listings for sale in the Fraser Valley at the end of January 2020 it gave us a ‘Sales to Active Listings Ratio’ of 21%. Anything above 20% is considered a seller’s market, 12-20% is a balanced market and anything below 12% is a buyer’s market.

Numbers can certainly tell a good story of what is happening in the market, but they do miss something that I feel is a key factor – the snowfall that we had mid-January. As we know, snow is not exactly something that we are used to in the Fraser Valley, and it affects many aspects of day to day life. Every year that there is a substantial snowfall, we also saw a large drop in new listings.  Snow tends to dissuade would be sellers more than it does those who are ready to buy, as seeing a home in extreme conditions can actually be quite an advantage.

Overall, the market looks to be in quite a healthy position. Prices should remain quite stable, perhaps seeing a slight jump up over the spring, but it seems unlikely that there will be any drastic change in the market.

If you are looking to make a move, 2020 may be a great year to do so, no matter what direction you are moving! Get in touch with me soon to find out how I can help you upsize, downsize, invest, buy your first home, or even move out of the lower mainland! Last year I helped many of my clients sell in the Lower Mainland and move across BC to destinations such as Osoyoos, Kamloops, and even on the island!

I look forward to hearing from you soon!
 

This tax can also apply when you make changes to a property title, even if you aren’t moving. For example, if you add someone’s name to a title, you may need to pay PTT. There are, however, some exemptions, like family tranfers or other special cases.

If a buyer is not a Canadian citzen or permanent resident, they are required to pay a larger transfer tax—20% larger, in fact. If the foreign buyer is an immigrant who has applied to the Provincial Nominee Program (PNP) and already has a PNP number, they are eligible for a one-time exemption of the 20% add-on.

Calculating Property Transfer Tax in BC

In British Columbia, the math for calculating PTT is not difficult, and this post includes the formula below. However, we have on our website, for your convenience, an online Property Transfer Tax Calculator that you can use to make short work of the calculations.

Here is how Property Transfer Tax is calculated:

~You pay 1% of the first $200,000 of the property’s fair market value.

~Add 2% of the portion of the fair market value between $200,000 up to and including $2,000,000.

~Add 3% of the portion of the fair market value above $2,000,000.

~Plus—if applicable—add an additional 2% of any portion above $3,000,000 for residential homes.

Please note that this calculation may be different if the property is mixed-use (residential and commercial) or a farm with an on-site residence.

PTT and Closing Costs

Property transfer tax is a one-time tax, paid around the time of closing on the purchase of real estate. It’s one of several expenses that in combination are referred to as closing costs.

Property Transfer Tax is not the same thing as property tax, which all homeowners pay and continue to pay on a yearly basis.

While closing costs exist across Canada, each province labels and calculates them in different ways. Likewise, exemptions also differ from province to province.

Real Estate Legal Services in BC

At Zancope Notary Public, we offer real estate services for clients in Langley and throughout Greater Vancouver and the Fraser Valley. We can help you with buying, selling, and refinancing real estate, and also provide family property transfers and independent legal advice. We are a full-service firm that is well acquainted with real estate law.

If you have any questions about this article or Property Transfer Tax in general, or if you want to make an appointment with Zancope Notary Public, please contact us at (604) 260-6783. Zancope Notary Public offers professional legal services, real estate services, and document notary services in Langley, BC.