Effective January 1, 2023

Anti Flipping Tax  - Profits from properties held for less than 12 months are fully taxed with certain exceptions for unexpected life events like death or divorce. This ensures investors pay their share and are an active role in lowering home prices. 

Speculation Tax – Effective May 7^th, 2022, The Goods and Services Tax/ Harmonized Sales Tax (GST/HST) will be applied to all assignment sales of new construction or substantially renovated residential housing. Note, an assignment sale is when a property is resold before it’s been built or lived in.

Vacant Home Tax – Foreign-owned underused housing will have a 1% annual vacant homes tax to help make more homes available, the market more affordable and to ensure non-resident owners of Canadian housing pay their share. 

Foreign Buyers Ban – Foreign purchasing will be halted for 2 years effective January 1^st, 2023 ensuring housing is used as Canadian homes and not as financial assets for foreign investors.

Benefits for Buyers in 2023 - The First-Time Home Buyer’s Tax Credit doubled to $1,500 in direct support to home buyers to offset the increasing costing costs involved in the home buying process. January 1^st, 2023 saw the introduction of a refundable Multigeneration Home Renovation Tax Credit which provides $7,500 to support the construction of secondary suites for senior family members or other adults with needs like disability.  

Tax-Free First Home Savings Account (FHSA) If you contribute $8,000 per year to buy a home, it’s the equivalent of the government offering you a non-taxable gift. Unlike the HBP, you don’t need to pay back the amount, even if the withdrawals are not used on a down payment for a home. However, those withdrawals will be taxable.

Reach out with any questions! It would be a privilege to serve as your Realtor.

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca

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Source: Housing Taxes and Benefits for 2023 | Greater Calgary Real Estate | November 26th, 2022

“Elevated lending rates are expected to weigh on sales in 2023, bringing levels down from the record-high in 2022 but with forecasted sales of 25,921, levels are still expected to be higher than the activity reported before the pandemic. Recent growth in migration and employment is expected to help offset the impact of higher lending rates, keeping annual sales activity higher than levels achieved throughout the 2015 to 2019 period. The growth in new listings in 2022 was not enough to offset the gains in sales and supply levels have remained low, especially for lower-priced product. The higher lending rates are also expected to weigh on listings growth in 2023 as it has become more challenging for a move up buyer. While improved starts are expected to help support supply growth, thanks to the strong migration levels, supply levels are not expected to report significant gains.

The low starting point and limited upward pressure on supply in 2023 is expected to prevent any significant downward pressure on prices as demand normalizes. However, conditions are expected to vary depending on price range and property type. Higher-priced homes are expected to see some downward price pressure as that segment of the market is not experiencing the same supply constraints.Meanwhile, supply declines relative to sales for lower priced properties are expected to continue to support modest price growth. Declines in the upper end of the market are expected to offset gains in the lower end of the market as total residential prices in Calgary are expected to stabilize in 2023.”

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca

Read More | CREB Forecast Calgary & Region Yearly Outlook Report

The real estate market can be significantly impacted by interest rates. When they’re low, it’s more affordable to borrow money to purchase a home which increases the demand and raises prices. When interest rates are high, it’s more difficult and less affordable to purchase a home which decreases demand and lowers prices.

Any change in interest rates can impact existing mortgage and the value of homes. They are crucial in understanding the overall health of the real estate market. If you have any questions about buying or selling, connect anytime! It would be a privilege to serve as your Realtor.

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca

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Source: How Do Interest Rates Affect Our Real Estate Market | Greater Calgary Real Estate | Jan 27^th, 2023

"Across Canada, monthly average housing prices have tumbled almost 20% from their peak levels last year as several negative forces have touched down, including a series of interest rate hikes and a slowing economy. During the same period, housing prices in the Prairies dipped by an average of 6%. In Alberta, prices will decline 5.6% - averaging about $418,000."

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca

Read More | Outperforming The Market-Home Prices Faring Better in Prairies | Calgary Herald

The target for the overnight rate increased to 4.5%, with the Bank Rate at 4.75% and the deposit rate at 4.5%. Quantitative tightening will continue. Inflation remains high and broadly based globally, but is trending down in several countries, reflecting lower energy prices and improvements to supply chains.

In the US and Europe, slowing economies are proving to be more resilient than at the time of the Bank’s October Monetary Policy Report (MPR). China’s lifting of COVID-19 restrictions revised the growth forecast and poses an upside risk to commodity prices. Russia’s war on Ukraine is still a source of uncertainty and financial conditions remain restrictive. The Canadian dollar has been relatively stable against the US dollar.

It’s estimated that the global economy grew about 3.5% in 2022, but will slow to about 2% in 2023 and then grow to 2.5% in 2024. Economic growth in Canada is stronger and the economy remains in excess demand. The labour market is tight as the unemployment rate is near historic lows. Businesses, however, are reporting ongoing difficulty finding workers.

There’s evidence that the restrictive monetary policy is slowing activity, especially household spending. Services and business investments are expected too slow in addition to weaker foreign demand helping to allow supply to catch up with demand.

It’s estimated that Canada’s economy grew by 3.6% in 2022 but is expected to stall through to the middle of 2023, and then picking up again later in the year. GDP is expected to grow 1% in 2023 and 2% in 2024. Inflation has declined from 8.1% in June to 6.3% in December, reflecting lower gasoline prices and durable goods.

Canadians are still feeling the hardship of high inflation in their essential household expenses, with persistent price increases for food and shelter. Short-term inflation is expected to remain elevated but inflation is projected to come down significantly this year.

Governing Council decided to increase the policy interest rate by a further 25 basis points. Governing Council is prepared to increase the policy rate further if needed to return inflation to the 2% target, and remains resolute in its commitment to restoring price stability for Canadians.

Reach out with your questions in regards to how this impacts your home buying or selling decision.

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠

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Curious about what's happening in the city this weekend? Here are a few activities and events worth taking note of!⁠

1. Banff Mountain Film Festival World Tour – Calgary

When: January 19th-21st, 2023
Where: Bella Concert Hall,, Calgary, AB
Cost: $26.50-$29.50

Ignite your passion for adventure, action, and travel with exhilarating big-screen stories. Journey to exotic locations, paddle the wildest waters and climb the highest peaks. Be taken away to the most captivating places on earth.

2. Nando’s National Hot Sauce Day

When: January 22nd, 2023
Where: Nando's Restaurants, Canada
Cost: FREE

Nando’s is treating guests to a FREE ¼ chicken at any Nando’s restaurant. All guests have to do is trade in any empty Nando’s PERi-PERi 250ml sauce bottle at any Nando’s restaurant. Don’t have a bottle of sauce on hand? Nando’s PERi-PERi can be bought at Loblaws, Wal-Mart, Metro, Sobeys, Save-On Foods and their affiliated chains.

3. Calgary Wedding Fair

When: January 22nd, 2023
Where: BMO Centre, Roundup Way SE, Calgary, AB
Cost: $30-$35

Bringing you the latest trends and gives you the opportunity of connecting with the service providers you need to create your special day.

Learn More | To Do Canada

Reposted with @regram
Photo by @dailyhivecalgary

This month I am sharing a list of some of the more common terms you may hear regarding real estate transactions. If you have any questions on these or any other real estate-related concerns, please feel free to reach out to me. I’ll be happy to help you out!

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠

Curious about what's happening in the city this weekend? Here are a few activities and events worth taking note of!⁠

1. Harlem Globetrotters

When: Saturday, January 7th, 2023
Where: Scotiabank Saddledome, 555 Saddledome Rise SE, Calgary, AB
Cost: $18-$388 + fees

From trick shots to long shots to how-did-they-do-that shots, get ready for the Harlem Globetrotters to put up…basketball shots! Stay on the lookout as the Globetrotters are taking even more incredible shots from around the arena – because shooters shoot!

2. Wilder Institute/Calgary Zoo – Snow Globes

When: NOW until Sunday, January 8th, 2023
Where: Wilder Institute/Calgary Zoo, 210 St. George's Drive NE, Calgary, AB
Cost: $150-$450

Rentable Snow Globes to make your next romantic date night, girls night out, family celebration or other occasion extra special! Enjoy your private oasis surrounded by twinkling lights at this one-of-a-kind experience. Your package includes admission to ZOOLIGHTS along with your selected food and beverage package.

3. Winsport Tube Park

When: NOW until March 2023
Where: Winsport Tube Park, 88 Canada Olympic Road SW, Calgary, AB
Cost: $16-$27

The perfect activity for a day with family and friends. WinSport’s Tube Park is one of the fastest of its kind in Western Canada.

Learn More | To Do Canada

Reposted with @regram
Photo by @dailyhivecalgary 

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December sales eased, but slowing sales over the 2nd half of 2022 were not enough to offset earlier gains as sales reached a record high of 29,672 units in 2022.The pullback in sales was also met with pullback in new listings, causing further declines in inventory levels. As of December, there were 2,214 units available, making it the lowest level of inventory reported for December in over a decade.

Benchmark prices eased to $518,800, down nearly 5% from the peak price in May but almost 8% higher than last December. While prices have trended down annually, they remain over 12% higher than last year’s levels. Overall, the housing market in 2022 generally outperformed expectations both in terms of sales and price growth.

If you or someone you know have questions about how this may impact your home selling or buying decision, send me a message!⁠

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠

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