Quote:
Originally Posted by noclue
God I hate people whining about foreigners and Chinese as if they affect the WHOLE vancouver real estate market. It's more due to cheap interest rates and relaxed downpayments due to CMHC.
Can't wait till the day interest rates spike to prove that assumption wrong.
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Yes, cheap interest rates do play a major role. But the same thing has been said about the housing market in vancouver for the last 4 years. It's going to crash, guess what? it hasn't. same thing is also being said about foreign buyers: they dont affect the market.
Those in the industry, myself included, know that foreign money has a huge part, foreign money (not buyers, as a lot of the chinese have Perm Residency and live here now, so technically they are not foreign, but the source of the money is foreign). Most of the sales are from people with foreign money nowadays.
I can't release data that can't be made public to prove it. But seriously guys, just go talk to any of your friends that work for developers, brokers, realtors, land titles offices, bc assessment, etc and they will tell you the same. Hell just go to open houses and walk around your neighbourhoods.
CHMC was a huge contributor to the increase in prices but that doesn't even matter that much anymore at this point. CMHC don't even lend to properties over $1 million, which now the majority of Vancouver is.
I'm not saying the foreign money is THE factor, but to say it doesn't have a major impact is wrong. Cheap money and easy lending are obviously the biggest factors, but the foreign money makes certain cities increase way more than others. Rate increases don;t affect the super rich that can afford $1 M + for a tear down.