The recent report suggesting that recreational property prices in British Columbia are set to decline this year has been questioned.
The Royal Le Page national report forecasts a 2.8% decline for the province’s cottage homes due to the impact of the province’s tax on secondary homes.
However, the tax is not province-wide and in some areas that are not subject to the additional tax burden, things may be different.
“I don’t agree with those [price] forecasts,” Bruce Lasuta, a veteran Royal LePage agent in Sechelt on the Sunshine Coast told Business Vancouver (biv.com).
He says the market is booming and data from the Real Estate Board of Greater Vancouver cited in the article shows a 7.9% rise in Sunshine Coast detached home prices since the speculation tax was introduced elsewhere in February.
Lasuta told Business Vancouver that he thinks the RLP report’s numbers were “made up in Toronto” and don’t reflect local market conditions.
Demand and prices in those parts of BC which are not affected by the speculation tax could benefit from weaker demand in the markets that are.
In response, RLP CEO and president Phil Soper said the perception remains that the speculation tax will impact the recreation market.