The price in Vancouver, BC has been overvalued for a long time, and the housing market in Vancouver is overshooting itself. Ordinary citizens in BC can hardly bear it. The high housing price exert a heavy debt on ordinary people while provide a good opportunity for those multimillionaires to spectulate and enlarge the gap of wealth.
The high price is partly brought by the rich immigrants and investors, but not all. BC’s economy which has no no jobs, no industry inside has made the decision of itself that it needs to depend on its higher price in housing market to keep its economic growth. Also, the banks like the high price which keep their loan for ordinary people cannot afford the housing price themselves.
However,CIBC deputy chief economist Benjamin Tal said in an interview that he believes B.C. prices could drop 10% over the next year — possibly more in Metro Vancouver where prices are so much higher — before settling down.
I remain my points because I think if there is not a change in the economic structure, there can hardly be a real drop which bebefits ordinary people because real estate is the prime engine of economic growth.