Quote:
Originally Posted by UFO
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.
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I still see a lot of the foreign money still happening, hasnt slowed down yet, but we will see in the next few months.
Here's the other thing, a lot of the chinese money is just happy that its now out of china with all the corruption crackdown. Even if the market goes down 20%, they are happy to get 80% rather than nothing. With the chinese government increasing their crackdown, the money is just going exit china faster.
I think 2015 RE prices will be higher than 2014 prices. but time will tell, I really hope I'm wrong as I think high real estate prices are bad for our economy.
The buyers in vancouver for RE are not your average joe, we're talking about $1.5 million + for west side and east van averaging over $1 million. New spec homes in east van are going for $1.4 million +