Re:Live small, be happy? The next new big thing
by jp555 on Tuesday April 21, 2015 @07:44AM
(#9413361)
Cheap credit continues to drive property prices into the insane, especially in Vancouver. This is a failure of monetary policy more than anything. You can now get a variable rate mortgage for less than 2%, which is the rate of inflation, so it's essentialy free money. This of course massivly inflates the bids people put on houses. It also does not help that the media repeats the R/E frankenumbers the R/E associations claim are fact, but are wildy out of step with reality.
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Re:Live small, be happy? The next new big thing
by bottled_poe on Tuesday April 21, 2015 @08:47AM
(#9413629)
Foreign investment is also a significant factor. That rope Lenin was talking about is tightening...
Re:Live small, be happy? The next new big thing
by jp555 on Wednesday April 22, 2015 @10:07AM
(#9420485)
I think that's more media spin. The actual sales stats show a TINY fraction of sales are to foreign owners, but more often for very expensive properties ($2M+), which can make things appear differently. Over 99% of homes, even in Vancouver, are sold to Canadian buyers.
But the spectre of "foreign buyers" does help the real estate industry by adding pressure to increase bids. I'm not suggesting there's a conspiracy, just that it's a narrative many actors independently have a monetary incentive to push.