But it’s curing a housing crisis where middle-class households are priced out of a market, inflated by rampant international speculation and large-scale money laundering, says BC’s Finance Minister.
Vancouver housing bubble sags. Toronto down 3.4% from peak. Calgary and Edmonton back to 2007. Montreal sets new record. National index ticks up the least for any May in 21 years of data.
This, despite still ultra-low interest rates and highest disposable income ever.
Vancouver prices drop. Toronto down 3.7% from peak, flat for 10 months. Winnipeg plunges most since at least 1990. Quebec City flat for 6 years.
Aircraft manufacturing consolidates.
“More than C$7 billion in dirty money was laundered in B.C. in 2018, hiking the cost of buying a home by about 5%, according to British Columbia’s Expert Panel on Money Laundering in Real Estate.”
“It is their interaction with froth that matters most. How much a housing market adjusts depends on how much froth there is”: Poloz
Money laundering in Canadian real estate is a widely accepted fact of life these days, but the impact isn’t.
How do they measure up against the most splendid housing bubbles in the USA? Oops!
Market for houses freezes up. House & condo prices drop. High end hit the hardest.