Realtor says non-resident deed transfer tax not enough to stop recreational home demand in region

Tom Ayers · CBC News

· Posted: Mar 28, 2025 5:00 AM EDT | Last Updated: 9 minutes ago

The marketplace outlook for recreational homes successful Atlantic Canada is stronger than anyplace other successful the country, says the president of Royal LePage Atlantic successful Halifax, contempt wide interest implicit the doubling of Nova Scotia's non-resident deed transportation tax.

Matt Honsberger said Wednesday that lakefront properties are disposable connected the East Coast for nether a half-million dollars, but tin spell for 3 times that oregon much successful different parts of the country.

The Nova Scotia Association of Realtors and others person said the province's non-resident deed transportation tax, which increases to 10 per cent from 5 per cent connected April 1, could crook disconnected buyers.

Honsberger said it mightiness impact some, but Royal LePage is inactive projecting an 8 per cent summation successful the terms of waterfront properties this year.

"I deliberation there's a small spot of authorities astatine play there," helium said. "I bash deliberation that it has a slowing effect connected it. I don't deliberation that it shuts the taps disconnected completely, due to the fact that erstwhile you look astatine apples-to-apples comparisons successful different provinces, we're inactive going to beryllium affordable, adjacent with that tax."

Royal LePage's latest numbers amusement prices for single-family waterfront homes successful Atlantic Canada were astir 13 per cent higher successful 2024 implicit the erstwhile year.

East Coast properties much affordable

The company's projection of an 8 per cent summation this twelvemonth is inactive treble the projected nationalist average.

Honsberger said properties are inactive much affordable successful Atlantic Canada than successful Ontario oregon B.C.

"If you privation a lakefront spot successful the Annapolis Valley here, you tin astir apt find a tenable lakefront spot for 3 oregon 4 100 1000 dollars," helium said.

"If you're idiosyncratic who's successful confederate Ontario looking to person a abrogation spot successful the Muskokas connected a lake, you're astir apt northbound of a cardinal and a fractional dollars. You tin inactive get oceanfront spot successful Nova Scotia for nether a cardinal dollars and you'd beryllium hard pressed to find that extracurricular of Vancouver oregon Kelowna oregon immoderate of those areas."

Royal LePage said the median terms of a single-family location successful Atlantic Canada past twelvemonth was $461,900, portion the median terms of a single-family waterfront spot was $598,000.

Non-residents an casual target

Honsberger said galore Canadians are choosing not to abrogation successful the United States due to the fact that of deteriorating relations betwixt the 2 countries.

He said galore are looking for abrogation homes that successful immoderate cases tin treble arsenic income properties, contempt Nova Scotia's hike past autumn successful short-term rental fees. 

Honsberger said non-resident taxes and fees are an casual target, due to the fact that the buyers don't ballot successful the province, but helium said the authorities should see easing regulations and taxes anyway, due to the fact that non-residents lend a batch to the economy.

On the time Nova Scotia Finance Minister John Lohr introduced the province's program to treble the deed transportation taxation for non-residents, he told reporters expanding the taxation was a mode to springiness Nova Scotian buyers a limb up connected out-of-province contention erstwhile it comes to location sales.

"If a Nova Scotian is bidding for a location and idiosyncratic other is bidding connected it arsenic a cottage, we privation that Nova Scotian to person a flimsy vantage and that's what that non-resident deed transportation taxation is — a flimsy vantage for a Nova Scotian," Lohr said astatine the March 5 measure briefing.