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The plunge in real estate sales and kinds of housing, causing average prices deceleration in price increases in the to slump. Vancouver area last month were exactly what the government was trying to But the real estate board prefers to maneuver, and Premier Christy Clark measure prices using the benchmark says there will be no changes to the price, which is a representation of a foreign-buyers tax. "typical" property sold in the area. Ms. Clark told reporters on Tuesday that The benchmark price for detached her government will not reconsider the properties reached $1.57 million in 15-per-cent tax that is intended to calm August, representing a 12-month increase what she called a "distorted market." of 35.8 per cent. However, compared with July, the figure was down 0.1 per cent. "The prices were going up way too fast and if we helped slow that down, that's Ms. Clark said it is too early to tell what good," she said. the impact of the foreign-buyers tax and a luxury sales tax on homes priced over $2 The Real Estate Board of Greater million has had on the market. Vancouver announced last Friday that August sales were down by 26 per cent While the premier said changes to the compared with last year, signaling a new legislation are not an option, the return to more typical levels, government will be doing even more to try to address housing affordability in The largest drop in property sales last Metro Vancouver. month was among detached homes, with "We need to make it easier for first-time a decrease of 44.5 per cent. home buyers to get into the market and Along with the slowdown in sales, the that's not just about price." board said prices that were once skyrocketing may be tapering off. Housing supply is a contributing factor to the problem, Ms. Clark said, with The average price of a detached home fell prospective developments "languishing" to $1.47-million last month, a 16.7 per in city planning departments for years. cent drop from the month before. Dan Morrison, president of the real estate Without giving away specifics, Ms. board, said on Friday that the region was Clark said her government will look at wmur In ancura sitias ara "mauinn. coma a) Does the tax impose on buyers or sellers? How can you tell? [1 Marks] b) Before the imposition of tax, what was the reason of "The prices were going up way too fast"? Graphically explain. [2 Marks] c) Discuss with figure about the impact of 15-per-cent foreign-buyers tax on British Columbia's (BC's) real estate market applying the concept of demand, supply and market equilibrium analysis. [3 Marks] d) What would be the impact on the housing market if provincial government of BC decide to increase the amount of rebate of low-income earning households buying their first home? [2 Marks] e) If the Canadian Government sets a ceiling price of houses in order to satisfy the buyers of the houses, what would be the impact this policy in the housing market. [2 Marks]
