Hi, Lisa here. I'm interested in this forum. I've been lurking and laughing. I get a kick out of all the reasons people give for why Vancouver's real estate market will remain strong. It might, but not for the reasons people are citing. We are living in a global cleptocracy and experiencing biflation and bifurcation, as a result.
Bifurcation of an economy, particularly Vancouver's, occurs when you have zip in terms of manufacturing and industry but tremendous inflows of money from foreigners looking to offshore their money. I won't reinvent the wheel by getting too deeply into this, because you have probably heard some of it before, before dismissing it as crazy. Bifurcation, as the term implies, destroys the middle class and creates a lot of personal trainers, barristas, dog walkers, etc...In other words you have a rich people and poor people (salt of the earth, kind of normal, nice, regular people). Vancouver is like a large cruise ship where the wealthy play on the upper decks, while below decks, working staff are stacked like cord wood in sweaty cramped quarters.
Which leads to my second term....'biflation'. Biflation describes what occurred in the U.S. and what could very well occur in Canada. Biflation describes a situation where you don't clearly have inflation or deflation, but both at the same time. There is a depression of price for credit sensitive items, like housing, with escalating prices for food and other necessary goods. Certainly there has been run away price inflation in real estate in the Vancouver region for years, with prices for everything else not quite tripling or quadrupling, but certainly doubling in the last 10 years.
Jim Rickard's book, Currency Wars and common sense, will tell you that the Canadian Central Bank will do everything in it's power to keep our dollar at or below par with the American dollar. So, how this will play out remains to be seen. But for Vancouver, price increases have very little to do with any of its exquisite features and much to do with macro-economics that rest on a bed of corruption and crony capitalism.
Oh, in the interest of full disclosure, I own commercial and residential property in the U.S. I own a home in B.C and I hold gold as a hedge because of the uncertain times we live in. And bitcoin!--I was going to buy it at 200.00..but dang...didn't do it!!