timing the market is one thing. Realizing that there is hysteria and the underlying fundamental landscape has changed and can no longer support the current prices is just being realistic.
We're going to need another wave of foreign money to support these prices because locals sure are not going to do it.
Approximately only the top 5% of households in BC can afford a 1 million dollar mortgage.
- Not all of them are looking to buy a home because most of them likely already own
- Not all of them live in Vancouver and are willing to overextend
- Not all of them are going to be suckers and buy into this market.
It seems that the detached market is on thin ice.
Perhaps a mass immigration of anti-trumps can save the day? - but lets be real, who is going to purchase a home before being approved through the immigration process...
It will be much easier to prop up and rescue condo market should that be needed, just see the incentives for FTBs already.
However, its going to take a serious increase in confidence for detached to soar again, and a serious amount of new debt or money coming in.
The debt spigot is likely tied off for now, considering the actions of the Feds. The money spigot appears to be in equally precarious position thanks to the first meaningfully succesful Chinese crackdown on currency outflows.
Definitely not impossible a new source of funds is discovered, or that rules change, but for now I don't see much hope for the high end.