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.
“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.
Market for houses freezes up. House & condo prices drop. High end hit the hardest.
Average home price fell for first time since 2008, largest decline in the data going back to 2001.
It’s not pretty.
The changes pose real threats to the highly speculative pre-sale condo market.
A massive survey of recent homebuyers reveals all.
Variable-rate mortgages, the HELOC phenomenon, and new stress tests meet higher rates.