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- ] post-comment - https://www.reddit.com/r/canada/comments/4irhro/foreign_buyers_are_crushing_home_dreams_in/d32yeeo
v1
There are several key factors(not just foreign buyers) impacting the current state of the real estate market in Vancouver and surrounding areas. The factors are ...
- *Supply VS Demand - Demand is currently at record high levels, supply is at record low levels.
- *Desireability - Vancouver is consistently ranked as 1 of the most liveable cities in the world.
- *Foreign Investment - Vancouver is an especially desireable market for a very large population of wealthy Chinese buyers.
- *Speculation - House prices in the market are seeing double digit gains for a number of years(20+% in 2015 alone),
- *Corruption - from shadow flipping to money laundering to ... all contributing to driving the market, to what degree, nobody knows for sure, but contributing.
- *Policy - There is very little government action at any level of any government towards addressing any of these issues.
- *Low interest rates - historically interest rates are at record low levels and stable, cheap money contributes to driving prices up.
When you add them all up, you get a real estate market that is divorced from the economic reality of the actual economic opportunites that exist in the city.
v2
There are several key factors(not just foreign buyers) impacting the current state of the real estate market in Vancouver and surrounding areas. The factors are ...
- Supply VS Demand - Demand is currently at record high levels, supply is at record low levels.
- Desirability - Vancouver is consistently ranked as 1 of the most livable cities in the world.
- Speculation - House prices in this market are seeing double digit gains for a number of years(20+% in 2015 alone), there are many people using Vancouver RE as an investment vehicle, a legitimate "get rich quick scheme" that's working .... for now
- Foreign Investment - Vancouver is an especially desirable market for a very large population of wealthy Chinese buyers, who are NOT reliant on the income they earn in the Canadian economy. This is why a house in Vancouver is ranked as the second least affordable in the world.
- Corruption - from shadow flipping to money laundering to ??? - all contributing to driving the market, to what degree, nobody knows for sure, but contributing.
- Policy - There is very little government action at any level of any government towards addressing any of these issues.
- Low interest rates - Interest rates are at historically record low levels and stable, cheap money contributes to driving prices up.
When you add them all up, you get a real estate market that is divorced from the reality of the economic opportunities that exist in the city.
Edit: format, wording
ADD EDIT
- City Zoning - Policy / S v D
-- Vancouver's city zoning laws are outdated and officials there are resistant to change them. While the supply of housing in any city will always be limited, many areas of the city are still zoned for detached, single-family homes only, which heavily restricts where any new, large-scale residential development that would increase supply and lower prices can take place.
-- SRC = comment https://www.reddit.com/user/The12thDoc
- Chinese -
-- Vancouver is a favorite place for them to park their money due to its already-established Chinese community, preponderance of luxury property, lax provincial laws on foreign ownership, and great quality of life.
-- SRC = comment https://www.reddit.com/user/The12thDoc
- Speculation -
- FOMO -
- OBS by u/? - chinese market crashing, + cdn dollar devalued = perfect time to buy in CA,
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