Since the announcement of the budget yesterday, there has been quite a bit of excitement about this new $10,000 First-Time New Home Buyer's Bonus. And of course, as with most things we've seen that are HST related, quite a bit of confusion also.

Here are some facts about the BC First-Time New Home Buyers' Bonus:

• It is a one-time refundable personal income tax credit worth up to $10,000
  • (The bonus is equal to 5% of the purchase price of the home to a maximum of $10,000)

• Comes into effect Feb 21, 2012 until March 31, 2013 

• To qualify:
  • Purchasers must be first-time home buyers, purchasing the home for use as their primary residence. 
  • The home must be a NEW home that is purchased from the builder/developer, or is owner-built
  • The written agreement to purchase must be enetered into after Feb 21, 2012
  • Construction of the home is complete, or the home is occupied before April 1, 2013

• The amount of the bonus is gradually reduced for high income earners based on net household income. (see link below for full information)

• This bonus is in addition to the existing New Housing Rebates in place.

Fact sheet on the First-Time New Home Buyer's Bonus can be found here >>

Finance Minister Kevin Falcon announced today that British Columbia will be returning to the PST system on April 1, 2013. He also announced the rules for how this transition will apply to the sale of new homes between now and then. 

As part of the transition process, starting April 1 of this year the government will significantly increase the threshold for its HST New Housing Rebate program. This means homes up to $850,000 will now be subject to the rebate. This is a signifcant increase from the former threshold of $525,000.

The government will ablso be introducing a rebate for new second and recreational homes costing up to $850,000. 

More information can be found at:

Today's  HST Transition Rules announcement  
Vancouver Sun - HST Transition Rules For New Homes

Complete information on the re-introduction of PST
PST in BC website- New Home Purchases

In case you needed a reminder on why Vancouver is one of the best places on earth to call home, here it is...

Bob Rennie: Help Transform Where We Live—Take the Urban Futures Survey from PlaceSpeak on Vimeo.

Share your input! Take the short survey and share what matters to you, and how you think our city should develop. 
www.UrbanFuturesSurvey.com

Average performance predicted for housing market in 2012

The British Columbia Real Estate Association (BCREA) recently released its 2012 First Quarter Housing Forecast Update.

“Modest economic growth at home and abroad is expected to limit growth in consumer demand both this year and in 2013,” said Cameron Muir, BCREA Chief Economist.

BC Multiple Listing Service® (MLS®) residential sales are forecast to increase 2.1 per cent from 76,817 units in 2011 to 78,400 units this year, increasing a further 2.7 per cent to 80,500 units in 2013. The 15-year average is 79,000 unit sales. A record 106,310 MLS® residential sales were recorded in 2005.

"While European sovereign debt concerns and a sluggish US economy will continue to impact consumer confidence, strong demand in the bond market is expected to keep mortgage interest rates at or near record lows for most of 2012,” added Muir.

Home prices in most BC markets are forecast to experience little change over the next 24 months as the supply of homes for sale more closely matches consumer demand. The average MLS® residential price in the province is forecast to edge down 2.2 per cent to $548,500 this year and remain relatively unchanged in 2013, albeit increasing 0.8 per cent to $553,000.