Did the Speculation Tax Have an Impact on Real Estate Activity?

Not really, according to David Langlois, incoming president of the Victoria Real Estate Board. He opined the greatest impact on real estate activity came from the lending rules.

“People’s buying power got reduced substantially in some cases,” he said, noting buyers who may have been considering the $1-million range were being forced to look at homes below $800,000. “It compressed activity into a particular price point.”

That means there were several categories of buyers looking at a limited supply of houses which creates a seller’s market and higher prices at the lower end of the spectrum, while sales slow and values decrease for homes in the million + range.