Vancouver home sales drop as foreign buyers tax bites

Canadian dollar could become increasingly sensitive to housing data

The first numbers that show just how bad the foreign-buyers tax in Canada's West coast is hitting are out. Sales fell 26% in August compared to the same month a year earlier. Detached homes fell 44.6%, the the Real Estate Board of Greater Vancouver said Saturday.

It will take a few months to gauge how well the market is coping with the tax.

To my mind, buyers should be able to use Canadian-domiciled corporations to buy so, ultimately, the foreign money will keep rolling in. It may just take a few months to iron out the kinks.

Don't look for any kind of reaction when the market opens for the week. Canadian and US trading is closed Monday for holidays.

Vancouver home sales drop as foreign buyers tax bites
Vancouver home sales drop as foreign buyers tax bites
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