Quote:
Originally Posted by Hehe
All it takes is few owners who decides to call it quit (stop losses) and send a shockwave throughout the market. What kind of shockwave? A message that the RE is no longer increasing in value (CAD term), and its value, in respect to the owner's original currency is continuing to drop.
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Is that really 'all' that it will take though? Foreign money may have sparked the market here, but the critical mass was achieved when long time local owners cashed in on their equity and/or combined with cheap credit then re-bought properties in different value areas and drove those respective prices up too, and so on and so forth.
So if the foreign money decides to pull out of their properties from an investment standpoint and cut their losses or not buy property here to begin with, I don't think it will make everybody else down the line do the same too--since these people need their homes to actually live in. Not saying it won't cool the market, it will, but it will take a lot more than 'a few' of these owners to mark the change you are proposing.
If the CAD continues to drop relative to whatever native currency the investor is using, you could argue that it may cause an increase in RE market activity, as that native dollar now buys more CAD than previous. Just my uneducated opinion.