Quote:
Originally Posted by SebC
That will drive down sticker prices but if mortgages stay the same or go up (the ultra rich can pay cash!) it won't improve affordability.
The reason Vancouver real estate is so expensive is the same reason diamonds are - it's something already desirable being pushed into the stratosphere by a supply-restricting cartel.
|
This exactly. The prices of houses go down.. but in terms of cash outlay - the 8% price decrease is just taken up by interest payments. The benefit is to people who bought/owned houses when interest rates were low - no benefit to people trying to enter the market despite the prices being lower.