I am a Nova Scotian, who just happens to live in Vancouver. When HST was introduced to NS about 20 years ago, there was the same hue and cry that everyone`s life and standard of living would be negatively impacted, that people would stop buying real estate, stop going out for dinner, buying fancy cars, etc.
In a word, within 6 months Maritimers got use to HST. People buy homes. They are going out to dinner. In fact, Halifax has more restaurants now than before HST. And they are still buying expensive cars.
HST is not a new tax. It is a combination of two already existing taxes. It will be applied to relatively few products and services that the Federal Sales tax portion did not apply to previously. That is what the uproar is over... the additional tax on very few things.
As much as the NDP threatens to get rid of the HST if/when it comes to power, I doubt it will be in a position to do so. However, they are politicians. And, politicians have been known to do things that make no sense, whatsoever.
Take a deep breath. Wait a few months, and unless Vander Slam (sic) has his way, HST will be a fact of life in BC. HST is great for business. Known in other parts of the world as VAT (Value Added Tax), it is used in the UK, throughout Europe, as well as, I think, Australia.
And to add a comment on whether HST affects used housing... It has no direct effect on used housing prices. It does, however, affect service expenses such as lawyers, as was pointed out.