Langley Real Estate

Published: July 01, 2010 2:00 AM

The Fraser Valley will offer buyers of new homes savings, now that the Harmonized Sales Tax (HST) has gone into effect, according to the Fraser Valley Real Estate Board.

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

The seven per cent Provincial Sales Tax (PST) has now joined 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, but the B.C. government will provide a rebate up to a maximum amount of $26,250. The provincial government says 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,” explained Horn, who represents nearly 3,000 Fraser Valley realtors.

“Although the HST impacts new home purchases more dramatically than resale, we’re pleased that through our lobbying efforts alongside other B.C. 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.”

Horn said she had recently recommended a new, single family home in Cloverdale to a client, 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, that will result in higher taxes.”

Canada Mortgage and Housing Corporation (CMHC) reports new apartments of 1,000 square feet are selling currently on average for $273,880 in Langley, $294,860 in Surrey and $232,800 in Abbotsford.

The average price of new townhomes in Surrey in May was $475,154, and in Abbotsford the average price was $403,469. The average price of new detached homes in Abbotsford in May was $532,129.