Higher Property Taxes for Vancouver Homeowners
Following the 2021 property taxes hike of 5% (announced December 2021) in Vancouver, another 5% increase is expected in 2022. While this is a lower rate of increase than the 7% increase in 2020, this marks 3 years in a row of 5% or higher increases by the City of Vancouver.
How much more will it burden homeowners, exactly? Here are examples:
- For a Vancouver Condo assessed at $711,000, it works out to $57 more, for a total of $1,194/yr.
- For a Vancouver House assessed at $1,717,000, it works out to $137 more, for a total of $2,883/yr.
Inflation Reduces Housing Starts, And This May Reduce Inventory Coming Up
According to the CMHC, the housing starts in October 2021 was 29% lower than the peak seen earlier in March. Inflation of labour and material costs appear to be the main reason. Some developers are having to ask for more money from buyers to cover the soaring costs, while many developers have simply put a halt to existing development plans. Following a period of reduced inventory in Vancouver, delay in housing starts could create a further squeeze in supply.
Mortgage Rate Hikes In The Horizon Is Most Likely
An increase in interest rates has been talked about for quite some time, especially in the context of high inflation following the QE money pump throughout the COVID-19 pandemic. Many Canadian economists are forecasting that in 2022, the rate hike will finally happen. Historically, an increase in interest rates reduce the borrowing limit, and therefore, the purchasing power of soon-to-be homeowners. How much of this contraction in purchasing power will counteract the reduction in inventory, time will tell.
Want To Discuss Your Real Estate Strategy for 2022?
Inventory reduction, interest rate increases, tax hikes are only a few of the factors that can affect real estate prices and what it means to buy or sell property in Vancouver. If you want an in-depth discussion of your future with experienced real estate agents, please contact Ken & Samantha now.
Review Vancouver Real Estate Stats In October 2021
- Olympic Village, Mount Pleasant and Main Street real estate movement in October 2021
- Arbutus, Quilchena & Kerrisdale detached houses movement in October 2021
- Shaughnessy & South Granville, Mackenzie Heights detached homes movement in October 2021
- The Cambie Corridor (sw Marine to Olympic Village/False Creek) real estate movement in October 2021
- Kitsilano, Point Grey, University, Dunbar & Southlands real estate movement in October 2021
- Detached houses movement in Vancouver Westside in October 2021
- Condos & townhomes – Downtown Vancouver vs outside of it in October 2021
Brought to you by your friendly REALTORS® through the MLS® System, courtesy of Ken Stef for your convenience.