jimtan wrote:In the long run, supply has to increase. Looks like Vision Vancouver has finally found some backbone. Remains to be seen how effective they will be.
However, BC's foreign buyers tax has been effective in shutting foreign buyers out from metro Vancouver. Steve, our honest realtor, has discovered an interesting kink in the market (see chart below).
http://vancitycondoguide.com/luxury-hom ... uyers-tax/
jimtan wrote:In the past, I have argued that RE prices could keep rising as long as residents could move to cheaper homes out in the suburbs. That the bears were wrong as long as money kept flowing into the prime areas, and supply kept rising in new neighbourhoods.
In other words, affordability was a matter of location.
Today, the situation has changed. Affordability is now an issue in all suburbs. Right after I sold my apartment in spring 2016, I was told by my realtor that there were no detached homes in Tsawwassen for under a million.
Burnaby, Delta and Surrey have all caught the fever. How many college graduates can afford million dollar crack shacks?
Remember that 50% of residents are still renters and rental vacancy is as low as zero in some areas.
Not surprising that there has been a massive backlash and governments are counter-attaching.
“Real estate speculators driving up prices to be target of reforms, Sousa says”
https://www.thestar.com/news/queenspark ... arket.html