The selling price of new homes dropped by 0.4 per cent in Metro Vancouver in August, compared to July, and confusion over the HST may be a contributing factor – especially for pre-sales.
The monthly new housing price index released by Statistics Canada Wednesday concluded that Vancouver experienced the most significant monthly price decline, month over month, as builders recorded lower negotiated selling prices and relied more on promotional pricing to generate sales.
Victoria experienced the next steepest price drop of 0.3 per cent.
Compared to August of last year, the selling price of new residential homes has also dropped in Metro Vancouver by 0.3 per cent, while rising 2.3 per cent nationally.
“We have projects that we’re anticipating bringing to market next year, but we won’t until there’s clarity on the [HST] rules,” Don Forsgren, president of Intracorp Developments, said in an interview. “It’s perplexing to consumers when they ask what taxes they’d pay and we say we don’t know.”