“Here, in a nutshell, is what Saretsky has learned. The reason most Vancouverites can’t afford a home is because of three related trends. The first thing you need to know is that low interest rates make it easier than ever to borrow money and invest in real estate. The second is that buyers from China and elsewhere are investing in the market at record levels. The third is that as real estate prices across the city skyrocket, a surge of domestic speculators — including first-time buyers worried they’ll miss their chance to buy a home — is causing prices to go even higher.
Or in Saretsky’s words: “I would boil it down to low interest rates creating an easy credit environment, slash foreign capital coming in and distorting the market, and ultimately, as prices went up, it fuelled a fear-of-missing-out speculation.”
– from ‘A Realtor’s Revolt – Why Steve Saretsky is exposing the truth about Vancouver’s real estate industry’, Geoff Dembicki, The Tyee, 12 Jun 2017
Gee, this guy sounds like us.
Note how he correctly classifies first-time buyers as domestic speculators.
All buyers here are speculators, have been for many years. – vreaa