It's the 90% of Canadians with access to cheap debt and fueled by "real estate never goes down! It's now or never" that pushed prices so high.
That new demand is on top of already high demand. It’s probably magnified as foreign investors want premium property and drive the top of the market up.
Note that the 10% was in the hottest Vancouver neighborhoods. It was much lower in the suburbs and those prices were still ridiculous.
I'm not arguing foreign purchases had zero impact on prices. I'm just arguing compared to domestic purchases, they are pretty small.
10-14% of buyers SELF REPORTED as foreign, across METRO VANCOUVER, not some fancy neighbourhoods. That's the base minimum possible percentage of foreign buyers.
Then the 15% tax was introduced and dropped foreign purchases down to to 3-4%. Do you really think the ~8% stopped buying? No, they just used one of the trivially available loopholes like sending in their astronaut family or buying through a trust company. And many buyers were doing that even before the tax was introduced.
I would love a portal to that universe in which Vancouver housing prices are dropping.
There was a short drop due to uncertainty around the tax and the elections / new government, but it is over, and it was tiny compared to insane price increases that immediately preceded it.
I don't know why you keep saying things that aren't true and yet can be checked online in under a minute.
I've shown very clearly that a temp drop in prices does not support your narrative. And that the prices are now back to an all time high.
You can stop pretending that you opinion is based on facts now, not fooling anyone.
My understanding is that condo sales and prices are still strong. So I'd ask if foreign purchases were the cause, why are condo sales still going up?