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Vancouver Foreign Tax Slowing an Already Cooling Home Market

  • Detached home sales down 66% in first two weeks of August
  • Price gains slowing this year, even before foreign buyer tax
Realtor Lorne Goldman stands in the master bedroom of a home for sale listed at C$7.89 million in the Point Grey neighborhood of Vancouver, British Columbia, Canada, on Friday, June 17, 2016. Vancouver has long been one of the world's most expensive places to live but price gains have reached a whole new level of intensity this year. Low interest rates, rising immigration, and a surge of foreign moneyparticularly from Chinahave all driven the increases.
Photographer: Darryl Dyck/Bloomberg
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British Columbia’s measures to cool off North America’s hottest real estate market are starting to have the desired effect.

Early data from the Real Estate Board of Greater Vancouver suggest the 15 percent foreign buyer’s tax, which was unveiled July 25 and took effect Aug. 2, may be curbing sales and limiting price gains, adding to a slowdown that started in May amid concern a housing bubble was forming in Canada’s third-biggest city.