NEWS
09/06/2016 14:38 EDT | Updated 09/07/2017 01:12 EDT

B.C. government will not reconsider tax on foreign home buyers, says premier

VANCOUVER — The plunge in real estate sales and slowdown in price increases in the Vancouver area last month were exactly what the government was trying to manoeuvre, and Premier Christy Clark says there will be no changes to the foreign buyers tax.

Clark told reporters her government will not reconsider the 15-per-cent tax that is intended to calm what she called a "distorted market."

The Real Estate Board of Greater Vancouver announced last Friday that August sales were down by 26 per cent compared with last year, signalling a return to more typical levels.

Clark says it is too early to tell what the impact of the foreign buyer tax and a luxury sales tax on homes priced over $2 million has had on the market.

While she says changes to the new legislation are not an option, the government will be doing even more to try to address housing affordability in Metro Vancouver.

Without giving away specifics, Clark says her government will be looking at the shortage of housing supply in cities.