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HST change likely to delay new-home sales until its elimination

The new plan to remove HST and the comeback of PST and GST would likely to postpone the purchase of new homes until 2013, as people may prefer to pay less than 12% tax rate for homes that are worth more than $525,000, according to Central 1 economist Bryan Yu.

Yu forecasts that resale home transactions would exceed 2010 by 4.7 per cent, yet new home transactions would decrease by 26 per cent. However, next year the new home transactions would drive the overall housing market by 3.4 per cent, and resale home activities would drop.

For the full article, please click on the link below:

Vancouver Sun – September 15, 2011

 

 

 

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