"These are generally-speaking the highest-priced areas and those that have enjoyed significant price increases largely due to the influence of wealthy “offshore” buyers, in particular, investors from Mainland China. Areas containing more affordable homes, such as Yaletown with its many small condominiums, have fared better as they’re driven more by local incomes and affordability and less by international investment."
"The good news for potential sellers is that so far, prices have not followed in lockstep with volume. Luxury home/condo prices tend to be sticky on the way down and they are certainly showing resilience again in the light of this slowdown in volume. That said, prices typically lag volume so where prices are headed is anyone’s guess. CBC Canada has been running segments on The National (nightly news) that suggest prices are set to follow in time if volume remains low. Predictions range from a USA-style housing collapse to a continuation in price softening."
Imagine prices driven by local incomes and affordability? Scary indeed!
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