Since the NDP Government took power in July 2017 they have been relatively quiet on the housing front. This comes amidst sweeping promises to bring drastic measures to the housing market, some of which included a 2% absentee speculators tax, an agency task force to prevent money laundering, and a rebate for renters. However, just one week away from their budget announcement on February 20th, the NDP Government hinted at what’s to come. Lieutenant-Governor Judith Guichon reiterated, “Safe, decent housing is a right that is under threat by speculators, domestic and foreign, who seek windfall profits at the expense of people who work, live and pay taxes in B.C.” She added, “Your government believes that people seeking to profit from B.C.’s real estate must also contribute to housing solutions.” Guichon’s remarks hint towards a much anticipated real estate speculation tax. If so, it will be a hefty blow to property flippers. It could further erode profits of detached house flippers, many of whom have been caught eating losses with that segment of the market having gone stale. Meanwhile, Vancouver condo flipping, which hit a 9 year high, could be in for a rude awakening. In 2017, nearly 11% of all condo sales were previously bought and sold within a 24 month window. Roughly a 74% increase from the year prior. 
Structural Issues
Happy Monday Morning! As expected, the Bank of Canada held interest rates at 5% for the second consecutive time. BoC’s
