For immediate release: June 28, 2010
Laurie Dawson 

MAJORITY OF ATTACHED HOMES IN FRASER VALLEY FALL UNDER HST THRESHOLD  

SURREY, BC – The Fraser Valley will offer buyers of new homes noticeable savings after July 1 when the Harmonized Sales Tax (HST) comes into effect, according to the Fraser Valley Real Estate Board.

Deanna Horn, President of the board explains, “Since the majority of new townhomes, apartments, as well as select, new single family homes in our region sell for less than $525,000, the BC new housing rebate threshold in BC, the impact of the new HST will be lessened.”

On July 1, the seven per cent Provincial Sales Tax (PST) will join the five per cent Goods and Services Tax (GST) for a combined HST rate of 12 per cent. The HST will apply to the sale price of all new residential homes however; the BC government will provide a rebate up to a maximum amount of $26,250. According to the provincial government, homes that sell for up to $525,000 will cost the same or less than what they would have when only the GST applied.

“When the HST was first announced, we were concerned for our clients,” explains Horn, who represents nearly 3,000 REALTORS® working in the Fraser Valley.  

“Although the HST impacts new home purchases more dramatically than resale, we’re pleased that through our lobbying efforts alongside other BC housing industry representatives, we were able to convince the government to increase both the threshold for the new housing rebate, and the amount of the rebate itself.  

“The result is that most buyers of new, attached homes and select detached homes in the Fraser Valley will be able to maximize the benefit of the government’s rebate program. Just recently, I was recommending a lovely new, single family home in Cloverdale to one of my clients with an asking price of $519,000. A similar home in other Lower Mainland communities could be considerably higher in price and after July 1, will result in higher taxes because it is above the HST threshold.”

According to Canada Mortgage and Housing Corporation (CMHC), the average price of new townhomes in Surrey in May was $475,154 and in Abbotsford $403,469. The average price of new detached homes in Abbotsford in May was $532,129. CMHC also reports new apartments – 1,000 square feet in size – are selling currently on average for $294,860 in Surrey; $232,800 in Abbotsford; and, $273,880 in Langley.  

The Fraser Valley Real Estate Board is a professional association of 2,989 real estate professionals who live and work in the communities of North Delta, Surrey, White Rock, Langley, Abbotsford, and Mission.

I just sold this House at 10857 162A Street, North Surrey, British Columbia .

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I just sold this Townhouse at 56 8383 159TH Street, Surrey, British Columbia .

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Is the market reality finally settling in?

For months I have been saying that most of the listing right now are overpriced. This has caused the buyers to pull back and make the market appear to be slowing down. Now it seems alot of sellers that were not very serious and/or are getting frustrated with the lack of activity caused by a swamped inventory are withdrawing from the market. This leaves the more serious sellers who are at or adjusting to fair market value. As you can see from today's FVREB hot sheets below there is almost as many price reductions as new listings, and the average price reduction was approx $15,690!

I would expect to see activity pick up in mid to late July once the HST has been implemented for awhile. Most new developments seem to be including the HST in their prices already so there should be NO downward pressure on the market.

Scott Williams - Fair Realty

I just finished uploading this Townhouse for sale, 3 13360 KING GEORGE Blvd, North Surrey, British Columbia

Mountain Creek Village. 22 units in the complex, 1422 sqft, 3 bdrm, 2.5 bath, 2 car garage. Tile & laminate on the main. Balcony off the kitchen, functional layout. Bright 3 bdrm above the main w/carpeting. Gas fireplace in the living room.

I just finished uploading this Condo for sale, 314 1442 BLACKWOOD Street, South Surrey White Rock, British Columbia

WOW! Totally updated, 2 bdrm unit with brand spanking new bathroom and kitchen incl cabinets, tile floors, new appls, laminate flrs, fresh paint and much more. Maint incl heat and hotwater. No age restriction and pets are ok. Hurry on this one before its gone!

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I just sold this Land Only at 26582 Reynolds Road, Hope, BC .

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I just finished uploading this Condo for sale, 707 13383 108TH Ave, North Surrey, British Columbia

CORNERSTONE, this sought after bldg is centrally located close to Sky train, SFU, Surrey Central Mall. Large corner 1 bdrm + den unit w/lots of updates incl new laminate floors in kitchen, new stainless steel appliances, modern tone on tone paint, update plumbing fixtures, gas f/p, in suite laundry, outdoor pool & hot tub. Underground parking/extra storage locker & bike room. Design award winning bldg-well managed & landscaped offering amenities including outdoor swimming pool, indoor hot tub, sauna, gym, theatre, lounge, plus 7/24 security/monitored & remote access.

Excerpts from the FVREB President's Column.


The BC government has raised the Provincial HST new housing rebate threshold to $525,000 from $400,000 AND increase the maximum rebate to $26,250 from $20,000.

What difference does that make? To give you an idea, of the 137 new homes (detached and attached) that sold on Fraser Valley’s MLS® in April (with an age of zero), 22 properties sold for between $400,000 and $525,000 – the average price being $475,658.

I feel the second key message is almost more important than the first one. Most buyers across the Lower Mainland may not have realized yet that the Fraser Valley will offer consumers noticeable savings when the HST comes into effect because about half of our new homes fall under the BC new housing rebate threshold.

Let me explain. Virtually all new townhomes and apartments in the Fraser Valley sell for less than $525,000. Therefore, the impact of the HST on these real estate transactions will be minimal. However, keep in mind the full 12% HST (as opposed to the current 5% GST) will apply to fees for professional services related to sales of new or existing homes.

In terms of detached homes – most new homes in the Fraser Valley are selling for above the threshold of $525,000. Although, I was just looking at a lovely new detached home in Cloverdale for one of my clients: asking price $499,000 + GST.

Rest assured, homes like this are undoubtedly going to attract even more attention after July 1st and it’s up to our members to promote the fact that in the Fraser Valley many beautiful, new detached homes and an endless supply of new attached homes will be nearly HST-free.

I just finished uploading this House for sale, 12440 102ND Ave, North Surrey, British Columbia

HOME IS IDEAL FOR CAR BUFFS with attached single garage AND a detached double garage tucked in behind with easy side access and loads of parking. This solid basement home has an awesome view of New West, Fraser River and Mtns! Home is original but clean and in good condition. Living room boasts floor to ceiling, wall to wall windows and sliding doors to front balcony fully taking in the view. Basement partly finished and waiting for your ideas. Large landscaped 8604 sqft lot. This unique home won't last.... HURRY!!

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