The latest in a series of stories about the rise and now fall of the real estate market in Vancouver. Here, zerohedge reports on the reaction to the market drop from a diplomat from China, who represents some of those hit the hardest.
Some time in the early days of August, Vancouver's housing bubble burst with a bang, not a whimper, just days after the July 25 announcement by British Columbia of a 15% luxury real estate tax, whose purpose was first and foremost to stop the Chinese "hot money" invasion. It succeeded. As we reported two weeks ago, what happened next was dramatic: at least in the first days after the tax was implemented, the local market essentially imploded, with the average City of Vancouver home price dropping to $1.1 million, down 20.7% over a period of only 28 days and down 24.5% over the last three months.
Confirming that the market has found itself in a state of paralyzed shock, there were only three home sales in West Vancouver between Aug. 1 and 14 this year, compared to 52 during the same period last year. That was a decrease of 94% (full details here).
Needless to say, while most Vancouverites had long been priced out of the domestic real etate bubble - and some say were hoping for the recent substantial pullback in prices, if not outright crash - the biggest losers from this sudden, dramatic collapse, were foreign buyers, mostly the Chinese, whose aggressive, "buy at any price" money laundering "purchase tactics" have been duly documented on this website for the past year.