March Real Estate Update
The BC housing market is in a period of relative calm entering the spring,?while activity is picking up,?home sales remain below normal,?and home prices have been essentially flat since last summer all over BC and/or are down depending on areas. The same is for our Okanagan Market and we are hoping that the market will pick up in April/May with a busier spring market.
Active listings in BC are up 20.3%?over last year as a result of slower sales but also a recovery in new listings in January and February following a very slow year for listings activity in 2023.?Last year was the slowest pace of new listing activity since 2005.
Housing construction starts:
In BC, housing starts rose 49% from last month in all areas of the province. Starts in the province were 22% above the levels from February 2023.?Compared to the same time last year, starts were down by 28% in Kelowna.?In Vancouver, starts were up by 82%.
First time homebuyers changes:
Canada Housing and Mortgage Corp.?announced last week that?the?first-time homebuyer incentive is being discontinued as of this month.?The cutoff for submitting new applications or resubmitting existing ones to the program is at midnight on March 21, 2024. While this decision may seem like a blow to affordability for first-time home buyers, a variety of alternative options remain accessible.
What other incentives are available for first-time home buyers:
1. The Home Buyers’ Plan:
The Home Buyers’ Plan allows?first-time homebuyers to withdraw up to $35,000 from their Registered Retirement Savings Plan?(RRSP) for a down payment on a home. The limit is per individual, meaning if you are buying a home with a partner then you both can withdraw up to $35,000 each, bringing the total amount to $70,000.
2. First Home Savings Account (FHSA)
The First Home Savings Account (FHSA) became available in April 2023 and?allows first-time homebuyers to contribute up to $8,000 to the account annually, tax-free.?The account acts as a tax-free savings account (TFSA), however, the money withdrawn from the account must be used for the purchase of your first home to avoid paying tax on it.?
3. Property Purchase Tax:
After you’ve purchased your home, a few expenses must be paid upfront as part of the closing costs. Property Purchase tax is part of the closing costs and, depending on the home you bought, can be quite a significant amount. To help first-time homebuyers manage these expenses,?a land transfer tax rebate exists in BC.?
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4. The Home Buyers’ Amount (HBA):
The Home Buyers’ Amount (HBA) is a non-refundable tax credit for first-time home buyers.?Homebuyers can declare $10,000 on their tax return for the year in which they bought their qualifying home.?Qualifying homes include existing homes and homes under construction.? Have questions about buying your first home? We are happy to guide you through your first home buying process.
For all detailed monthly Statistics for the Okanagan, please see Charts below.
Wishing you a fantastic Spring break, whether you're spending it with your family (if you have children) or enjoying some well-deserved time for skiing, golfing, or hiking.
Best wishes and always here for any real estate questions.
Annette & Stephanie and Team
Quote of the day:?Courage is like a muscle. We strengthen it by use.
Okanagan’s best website to get the latest listings:??www.moveokanagan.com
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Move Okanagan Group – serving Kelowna – Lake Country – Vernon – Silver Star
Based on MLS??active residential listings taken & sold units as reported by Association of Interior Realtors??in 2024 and YTD February 2024 for Central Okanagan.