Quote:
Originally Posted by MarkyMark
That's quite a bit less buying power. Will this drive down prices or just make it harder to buy a place for the average person?
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In the short term, yes it will make it harder for the average first time buyer.
I imagine what you'll see here is that there may be some down payment top ups from family to help first time buyers.
In the long term, prices may fall, but that doesn't really help people who want to stop being renters and have a need to buy a home. It could take 4-5 years for all these changes to have their impact and create a new market equilibrium. That's 5 years less of equity+returns. And whatever effect these measures have on the lower end of the market, that detached home in Metro Vancouver will never become affordable to anyone under the age of 30.