Market information

Things you should know if you are planning on buying or selling real estate

Posted on June 4, 2024 by Jennifer Clancey & Colleen Fisher

Understanding the Contract of Purchase and Sale

In collaboration with the Canadian Bar Association BC Branch, BCREA has a newly updated video to share with our clients to help you better understand what’s involved in the preparation of the Contract of Purchase and Sale (CPS) for a particular property. Central to any transaction, the CPS – Residential outlines the terms and conditions on which a transaction takes place.

Video Understanding the Contract of Purchase and Sale

Posted on May 27, 2024 by Jennifer Clancey & Colleen Fisher

Federal Budget 2024: What are the proposed capital gains tax changes and how might they affect me?

What are capital gains?

When you sell an asset or investment for more than you paid for it, that difference is your capital gain. For example, say you bought a cottage for $400,000 and two years later, sold it for $500,000. You have a capital gain of $100,000. On the flip side, when you sell an asset for less than you bought it for, you have a capital loss.

You can realize capital gains and losses on several types of investments and property, including stocks, bonds, shares in mutual funds, rental properties, cottages, even business equipment. Capital gains and losses do not apply to your primary residence.

What is capital gains tax?

In Canada, capital gains are taxable. How much tax you pay depends on a few factors. That’s because the value of a capital gain is treated as income during the year in which you realized it – in other words, in the year you sold your investment or property. But it’s not the full value of the gain that gets taxed – rather it’s only a portion.

The capital gains tax inclusion rate – today and tomorrow

Today, only 50% of the capital gain is taxable (this is known as the capital gains tax inclusion rate). This means that $50,000 of the $100,000 earned from the sale of the cottage in our example is added as income for that tax year.

Here’s an example:

  • Your regular income, earned from your full-time job, is $75,000

  • You make a $100,000 profit from the sale of your cottage (after you pay real estate fees, closing costs, etc.)

  • 50% of the profit is taxable, which means you add $50,000 to your income during the tax year in which you realized this capital gain

  • $75,000 + $50,000 = a total income for that tax year of $125,000

The amount of tax you ultimately pay in that year will depend on your tax bracket and its marginal tax rate.

If this budget is passed, the capital gains tax inclusion rate is set to change. The federal government’s 2024 budget proposes a few modifications to how capital gains are taxed. Here’s a rundown of the changes:

  • For all corporations and trusts, the capital gains tax inclusion rate will increase to 66.67% – up from 50%.

  • For individuals with gains over $250,000, the capital gains tax inclusion rate will increase to 66.67% – up from 50%.

  • For individuals with gains under $250,000, the capital gains tax inclusion rate will stay the same, 50%.

Who will the changes affect?

The adjustments will affect all corporations and trusts regardless of value, as well as individuals with capital gains of $250,000 or more.  

Capital gains tax does not apply to your primary residence, so you these changes could affect you if:

  • You sell a secondary property – such as a cottage, rental or investment property – and earn more than $250,000 in profit from that sale.

  • You sell investments for a value of $250,000 more than the original purchase price.

When will the changes take effect?

If adopted, the changes will take effect on June 25, 2024.

The federal government estimates that 28.5 million Canadians will not have any capital gains income next year, while three million others will fall below the $250,000 annual threshold, suggesting that these changes will not have an impact on the majority of Canadians.

If you believe they will affect you and your finances, it may be worth speaking with a qualified tax advisor and financial planner to learn strategies to reduce the impact of capital gains taxes and the proposed increased inclusion rate.


*This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

*Publication Royal Bank of Canada Federal Budget 


Fraser Valley Housing Market – April 2024

Posted on May 27, 2024 by Jennifer Clancey & Colleen Fisher

Modest increase in April home sales in the Fraser Valley takes lead from cooler spring weather

SURREY, BC — Supply of available homes in the Fraser Valley market continued to build last month, however buyers remained relatively hesitant, leading to a cooler resale market in April.

The Fraser Valley Real Estate Board recorded 1,471 transactions on its Multiple Listings Service® (MLS®) in April, up 5 per cent from March, but off by 5 per cent compared to April 2023.

While sales were the third lowest recorded for an April in the last decade, inventory continues to build, reaching levels not seen since September 2020. Active listings were 7,313, up by 18 per cent over last month and 17 per cent above the 10-year average.

“We are seeing a relatively calm and balanced market right now,” said Jeff Chadha, Chair of the Fraser Valley Real Estate Board. “Which means buyers have time to shop around and purchase a home without the pressure of a few years ago, and while prices are holding fairly steady across all property types.”

New listings helped bolster overall inventory, increasing 33 per cent in April, to 3,976. With a sales-to-active listings ratio of 20 per cent, overall market conditions are balanced. The market is considered balanced when the ratio is between 12 per cent and 20 per cent.

“There is a lot of caution in the market right now,” said FVREB CEO Baldev Gill. “Buyers are hesitant to purchase a home until the Bank of Canada lowers its rate — however we encourage anyone looking to get into the market to talk to their REALTOR® and their financial professional about what rates are available today.”

The average number of days homes are spending on the market continues to decline, with single-family detached homes spending 23 days on the market, down from 27 days in March, apartments spending 23 days on the market, down from 26 days in March and townhomes moving more quickly at 19 days, down from 20 days on the market in March.

Overall Benchmark prices edged up again in April, by 0.5 per cent from March and up 1.5 per cent over April 2023.

MLS® HPI Benchmark Price Activity

  • Single Family Detached: At $1,532,700, the Benchmark price for an FVREB single-family detached home increased 1.0 per cent compared to March 2024 and increased 5.3 per cent compared to April 2023.

  • Townhomes: At $854,700, the Benchmark price for an FVREB townhome increased 0.9 per cent compared to March 2024 and increased 4.9 per cent compared to April 2023.

  • Apartments: At $561,900, the Benchmark price for an FVREB apartment/condo increased 1.2 per cent compared to March 2024 and increased 5.7 per cent compared to April 2023.


To view full stats package click here.


Reciprocity Logo The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.