Nova Scotia eyeing taxes for homebuyers coming from outside the province due to surge in demand

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Nova Scotia eyeing taxes for homebuyers coming from outside the province due to surge in demand
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Premier Tim Houston wants to implement a deed transfer tax on any property purchased by individuals who do not pay taxes in Nova Scotia

Buying a home in Nova Scotia may soon be more expensive for people from outside the province.

However, realtors believe the taxes – targeting investors in hopes of slowing down the market and helping maintain housing affordability for locals – will have a minimal impact and do little to address the market’s main problem: lack of supply. The rise in demand led to a corresponding spike in prices. The average Dartmouth-Halifax home price was up $471,746 last month, up almost 23 per cent from $384,001 last September, the Canadian Real Estate Association reported.

In July, CMHC found the average days a Halifax-Dartmouth home spent on the market was 13, down significantly from 45 in January. Matthew Honsberger, a Nova Scotia realtor with Royal LePage, agreed and added that he finds the proposed policy “disappointing.”

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