The market is changing for sellers and buyers alike, but we are here to help! ⁠

Navigating the Bank of Canada's rising interest rates, price reductions, and a reduction in offers is not something you need to face alone. ⁠

Give us a call and let's discuss what the changing market means and how we can help you.

We ranked in the RE/MAX Top 50 Canada (Small Team, Residential) in Canada!

Island Homes Group is ranked #12, and we are so very grateful for all the help and support we’ve consistently received from all of our loyal clients, friends and family. Thank you for helping us achieve a spot on the Top 50 list!

Here are some critical changes in the real estate market that came into effect as of January 1 2023.

Anti-flipping tax

• Selling a property within 12 months of buying it will be considered “flipping” and profits will be taxed as business income.

• Ineligible for the principal residence exemption or the 50% capital gains rate.

• There are exemptions for “life events” such as a divorce or death.

Buyer Rescission Period

• Buyers can walk away from a purchase within three 3 business days after an offer is accepted.

• Buyer will have to pay the seller 0.25% of the purchase price. ( $2500 for every $1,000,000.)

Canada-wide ban on No Foreign Buyer purchases for 2 years

• Only Canadian citizens or permanent residents will be allowed to purchase property in Canada for 2 years

• Temporary residents, work permits, non-residents who are married to residents/Canadians, diplomats and refugees are exempt from this ban

• Exemptions for buildings with more than 3 units, recreational property, foreclosures, and inheritances.

Speculation & Vacancy Tax expansion in BC

• Now that rentals must be allowed in buildings, units that aren’t rented will be subject to the speculation/vacancy tax of 0.5% of the value and 2% for foreign owners per year, plus in Vancouver, 3% empty home tax annually.

• Pressure to have units rented out if vacant for more than 6 months of the year

• Expanded to more areas such as Squamish, Lions Bay, Ladysmith

If you have any questions about recent changes to the real estate market, contact us!

Spring and summer are commonly known as peak-season in Canada’s real estate market. But there are a number of benefits to purchasing in what is considered off-season too! From cost savings to enhanced convenience, here are five advantages of off-season house hunting and off-season homebuying.

Perk #1: Highly motivated sellers

Winter sellers tend to be highly motivated and eager to sell their property quickly, particularly if they’ve listed just before or during the holiday season. This is a favorable time of year for buyers, in terms of encountering sellers who are receptive to negotiating on price and sales conditions.

Perk #2: Fewer bidding wars

Many parents would rather enroll their kids in a new school in September, not mid-year. You’ll have fewer competitors when you bid on a house that’s for sale during the off-season. You’ll encounter fewer fever-pitch multiple-offer scenarios, and be less likely to be outbid.

Perk #3: You’ll be able to see problems and negotiate solutions.

Does the roof leak? Are telltale icicles indicating attic heat loss? Is the basement carpet wet? Is the street around the house buried in snow because the municipal ploughs come here last? Are the living spaces drafty? Find out before you buy.

Check out a house midwinter and you’ll see what it’s like during the worst of our Canadian weather. No surprises here. And with motivated sellers and fewer potential buyers/competitors, you’re more likely to have the problem repaired outright, or to negotiate a repair credit into the sale price.

Perk #4: Less-busy real estate professionals

Almost every professional you deal with during your midwinter house hunting will be less time-stretched than during the peak season. From real estate agents to bank representatives and real estate lawyers, everyone will be seeing fewer clients. With fewer client needs to juggle, you can benefit from lightning fast response times, and faster than average turnarounds on paperwork and processing, from everyone you work with during the house hunting and homebuying process.

Perk #5: A smoother move

You can count on better service – and a better price – when you hire movers for a winter job. With fewer moves going on, you’re more likely to get your preferred date and time. By avoiding peak season, you’ll pay the lower off-season moving rates.

Although there are downsides to off-season buying (namely, fewer homes to choose from, and one more thing to add to your busy holiday schedule), the benefits are significant enough to make it a smart choice for many first-timers and experienced homebuyers alike.

If you’re okay with a mid-winter move, you may get access to inventory that would be otherwise difficult to purchase. 

So don’t stop looking for homes just because winter is here.

Let us help you find the home you’re looking for!