Affordable housing was the top priority in BC Budget 2024 and the government plans to make significant capital commitments to get middle-income earners into market homes and provide more supports and protections for renters.

Here are the highlights for property buyers, renters, and small business.

Property Transfer Tax (PTT)

The first-time homebuyers’ exemption

Effective April 1, 2024, the threshold is increased from $500,000 to $835,000, with the first $500,000 exempt from property transfer tax. The phase out range is $25,000 above the threshold, with the complete elimination of the exemption at $860,000. 

The newly built home exemption threshold

This threshold now eliminates the PTT for eligible first-time home buyers on new homes up to $1,100,000 from the previous $750,000. The phase out range is $50,000 above the threshold, with the complete elimination of the exemption at $1,150,000 for qualifying newly built homes. 

New purpose-built rental buildings

Buyers of new qualifying purpose-built rental buildings will be exempt from the PTT starting January 1, 2025 and ending December 31, 2030. This exemption builds on the further two per cent property transfer tax exemption for new purpose-built rentals announced in Budget 2023 and the rental housing revitalization tax exemption provided in Budget 2018. 

PTT exemptions dates

• Increase threshold for first time home buyers’ exemption – begins April 1, 2024.

• Increase threshold for newly built home exemption – begins April 1, 2024.

• Enhanced exemption for new purpose-built rental buildings – begins January 1, 2025 and ends December 31, 2030.

The government estimates these new PTT exemption thresholds will save homebuyers about $8,000 and British Columbians over $100 million annually, and up to 14,500 homebuyers – twice as many as before – will now be eligible for the PTT exemption.

PTT revenue growth is expected to average 8.6 per cent annually over the next two years.

Note: For more than two decades, Greater Vancouver REALTORS® have been advocating for changes to the PTT, meeting with politicians and providing submissions each year. Government has finally listened. 

Flipping tax

The government is bringing in a new flipping tax, effective January 1, 2025, on the profit made from selling a residential property, including a presale assignment, within two years of buying it.

The rate is 20 per cent within the first year of purchase, declining to zero between 366 and 730 days. The tax will not apply to land or portions of land used for non-residential purposes.

There are exemptions for

• those adding to the supply of housing or engaging in real estate development and construction

• life circumstances including separation or divorce, death, disability or illness, relocation for work, involuntary job loss, a change in household membership, personal safety, or insolvency

In addition to these exemptions, individuals selling their primary residence within two years of purchase can exclude a maximum of $20,000 when calculating their taxable income.

The government estimates the tax would generate $44 million in revenue in the 2025/2026 fiscal year, which is slated for affordable housing.

Source: BC Budget 2024, page 66.

BC Builds and supporting renters

BC Builds, launched in February 2024, includes $198 million over three years and leverages government-owned, public, and underused land, and low-cost financing to bring down construction costs and deliver more middle-class rental and market housing.

Secondary suites

Forgivable loans up to $40,000 for homeowners to build and rent secondary suites below market rates to quickly increase affordable rental supply.

Renter tax credit

An annual income-tested tax credit of up to $400 per year for renters.

Zoning and permitting

Allowing small-scale, multi-unit affordable housing including townhomes, duplexes, and triplexes through zoning changes and proactive partnerships.

Streamlining permitting to reduce costs and speed up approvals to get homes built faster.

Short-term rentals

Strengthening enforcement of short-term rental regulation.

Electricity tax credit

A new, one year electricity affordability credit for all households, regardless of income starting in April 2024. Households will save on average $100 a year on their electricity bills.

Commercial and industrial customers will receive savings of about 4.6 per cent based or about $400 on their 2023/24 electricity bills.

Climate change and climate action

More than $1 billion in new spending measures to help protect British Columbians from the effects of climate change and build a greener economy.

The Climate Action Tax Credit increases to $1,005 per year for families up to four persons, up from $890 last year. Individuals will receive $504 compared to $447 last year. Start date is in July 2024. 

Small business

There is $100 million in relief for the employer health tax, including the  continuation of the venture capital tax credit, and the expansion of the interactive digital media tax credit.

Deficit and debt

The government estimates this years’ deficit at $5.914 billion rising to $7.773 billion by 2026.

The total debt will rise from $103 billion to $123 billion in 2024-25.

More information

Read the BC Government news release on BC Budget 2024.

Read Budget BC 2024 Highlights regarding housing.

Read the BC 2024 Budget speech.

Visit the BC Budget 2024 website.

Read BC Budget 2024 (opens a 170-page pdf).

If you have questions about the BC Budget, contact Harriet Permut, director of government relations at hpermut@gvrealtors.ca

PARKSVILLE 96, SURREY

DATE: Tuesday March 5, 2024

TIME: 12:00 pm – 1:30 pm

LOCATION: 12070 88 Ave, Surrey

REGISTRATION: https://forms.gle/pXKG4huf4K7aCHzGA

Friday, March 22, 2024

Reception - 5:45 pm

Dinner - 6:45 pm

When ordering your ticket for the Awards Dinner, please inform the front desk if you will require a vegetarian meal.

FRAME – East Tower – 2751 Kingsway

DATE: Saturday February 17, 2024

TIME: 11:00 am – 12:30 pm (light refreshments)

LOCATION: 2008 Kingsway, Vancouver

Sign Up : https://forms.gle/P2SBmXN1HbiEg6wQA

Realtor Bonus/Buyer’s credit/Money Tree credit

Call Angie at 778-881-3638 for appointment.

DATE: Thursday February 15, 2024

TIME: 11:00 am – 1:00 pm

LOCATION: 3302 North Arm Avenue, Vancouver

IMPORTANT : Tour starts at 11am, dress comfortably for outdoor walking and weather conditions. During the tour there will be a prize draw $100 Bufala gift card. After the tour, relax and unwind with a drink at Local Public Eatery in River District, COMPLIMENTS of Wesgroup.

Sign Up : https://forms.gle/J11jPJAbEkVJx7LLA

RSVP

You’re invited to join us on Wednesday, February 7th for our Frame Realtor Event. You will be among the first to tour our new Presentation Centre, learn more about the exclusive Event Realtor Offering and the newly released Summit Collection. More details to come soon.  

WHEN

Wednesday, February 7

• 12 - 1 PM

WHERE

• Frame Presentation Centre
  2008 Kingsway, Vancouver

WHY

• Priority Access to our New Presentation Centre 

• Event Exclusive Realtor Offering

• Discover Frame Summit Collection

• Up to $4,000 in Prizes Giveaways

• LNY Festival Style Treats and Refreshments

Registration for this event is now open, RSVP to secure your spot early. 

RSVP TODAY

DATE: Saturday, February 3, 2024, WITH CLIENT EVENT

TIME: 2:00 pm – 3:00 pm

LOCATION: JUNO Sales Gallery #1-13890 104 Ave., Surrey

SIGN UP: https://forms.gle/VaQyZQ7rwyPio7L88

While the Metro Vancouver1 market ended 2023 in balanced market territory, conditions in January began shifting back in favour of sellers as the pace of newly listed properties did not keep up with the volume of home sales.

Sales

The Real Estate Board of Greater Vancouver (REBGV) reports that residential sales2 in the region totalled 1,427 in January 2024, a 38.5 per cent increase from the 1,030 sales recorded in January 2023. This was 20.2 per cent below the 10-year seasonal average (1,788).

"It’s hard to believe that January sales figures came in so strong after such a quiet December, which saw many buyers and sellers delaying major decisions. If sellers don’t step off the sidelines soon, the competition among buyers could tilt the market back into sellers’ territory as the available inventory struggles to keep pace with demand." - Andrew Lis, REBGV director of economics and data analytics

Listings

There were 3,788 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in January 2024. This represents a 14.5 per cent increase compared to the 3,308 properties listed in January 2023. This was 9.1 per cent below the 10-year seasonal average (4,166).

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 8,633, a 9.8 per cent increase compared to January 2023 (7,862). This is 0.3 per cent below the 10-year seasonal average (8,657).

Sales-to-active listings ratio

Across all detached, attached and apartment property types, the sales-to-active listings ratio for January 2024 is 17.2 per cent. By property type, the ratio is 11.9 per cent for detached homes, 22.9 per cent for attached, and 19.9 per cent for apartments.

Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

“Our 2024 forecast is calling for a two to three per cent increase in prices by the end of the year, which is largely the result of demand, once again, butting up against too little inventory,” Lis said.

“If the January figures are indicative of what the spring market has in store, our forecast may already be off to an overly conservative start. Markets can shift quickly, however, and we’ll watch the February numbers to see if these early signs of strength continue, or whether they’re a blip in the data.”

By property type

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,161,300. This represents a 4.2 per cent increase over January 2023 and a 0.6 per cent decrease compared to December 2023.

Sales of detached homes in January 2024 reached 379, a 28 per cent increase from the 296 detached sales recorded in January 2023. The benchmark price for a detached home is $1,942,400. This represents a 7.3 per cent increase from January 2023 and a 1.1 per cent decrease compared to December 2023.

Sales of apartment homes reached 746 in January 2024, a 30.6 per cent increase compared to the 571 sales in January 2023. The benchmark price of an apartment home is $751,900. This represents a 4.4 per cent increase from January 2023 and a 0.1 per cent increase compared to December 2023.

Attached home sales in January 2024 totalled 285, a 82.7 per cent increase compared to the 156 sales in January 2023. The benchmark price of a townhouse3 is $1,066,700. This represents a 4.3 per cent increase from January 2023 and a 0.6 per cent decrease compared to December 2023.

REBGV Stats Package for January 2024

SURREY, BC – The Fraser Valley real estate market showed signs of recovery in January as home sales rose after six consecutive months of decline, and new listings more than doubled.

The Fraser Valley Real Estate Board recorded 938 transactions on its Multiple Listing Service® (MLS®) in January, a 12 per cent increase over December and below the 10-year average for sales in the region.

At 2,368, new listings increased 151 per cent in January, rebounding strongly from the seasonal lull seen in December. This is the largest month-over-month percentage increase in new listings in five years.

“With January sales on the rise, we are seeing hopeful signs that optimism is returning to the market,” said Narinder Bains, Chair of the Fraser Valley Real Estate Board. “Anticipating that we may be at the end of the Bank of Canada rate hike cycle, it appears that more buyers are considering re-entering the market as we are starting to see more traffic at open houses.”

Active listings in January were 4,877, up by 4 per cent over last month and up by 18 per cent over January 2023. The sales-to-active listings ratio was 19 per cent, representing balanced conditions in the overall market. Detached houses are in balanced market territory at 19 per cent, while both townhomes and apartments remain in seller’s market territory at 34 and 27 per cent respectively. The market is considered balanced when the ratio is between 12 per cent and 20 per cent.

“Current balanced market conditions present opportunities for both buyers and sellers,” said FVREB CEO, Baldev Gill. “In today’s market, buyers and sellers have time to get preapprovals, put together offers and take the time needed to work through the purchase or sale of a home with the help of a knowledgeable and professional REALTOR®.”

The average number of days homes are spending on the market has been increasing since October, with single family detached homes spending 44 days on the market, apartments spending 41 days on the market and townhomes moving more quickly at 33 days.

Overall Benchmark prices continued to edge downward for the sixth month in a row, losing less than half a per cent from December, and down six per cent from the 12-month peak in July.

FVREB Stats Package for January 2024

Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act and regulations are lengthy and complex and brokers and REALTORS®  often experience difficulties in their quest to comply.

To assist brokers and Realtors, the Canadian Real Estate Association (CREA) provides a range of FINTRAC regime compliance materials, which it has just updated. 

Important changes highlight areas where real estate professionals are encountering difficulties in complying, including: 

1. Revisions to the client risk section of CREA’s Information Record templates to assist members in determining a client’s risk of money laundering and terrorist financing.

2. A revised Receipt of Funds template to make it clearer that information on the person providing the funds needs to be recorded.

3. An updated Risk Assessment Form that’s intended to assist brokers, step-by-step, in determining their brokerage’s risk of money laundering or terrorist financing.

These updated materials are now posted on CREA’s FINTRAC compliance portal. 

FINTRAC forms are also now available on CREA WEBForms®.

If you have questions, concerns of comments, contact CREA’s Legal team by email at legal@CREA.ca.

You can also contact Harriet Permut, Real Estate Board of Greater Vancouver director of government relations at hpermut@rebgv.org.

Note from Unilife Realty: the FINTRAC forms have been updated on the Unilife Realty Intranet. You can also find the revised FINTRAC FAQ from December 2023 in the FINTRAC FORMS category on the DOCUMENTS page.