Imagine the Canadians who bought in the last 6 months. They probably purchased thinking it was a great investment and if they didn't buy now they'd never be able to afford a home in Vancouver.
And the shocking thing is just how big the losses can be when homes cost >$1M. If you buy a $200K home and the market drops 10%, it's a $20K loss of your down payment. A lot of money, but something manageable for most people.
If you bought a $1.5M home and the price dropped 10%, that's a $150K hit to your pocket book. And 10% is a small drop in an overheated market like Vancouver. It wouldn't surprise me to see a drop closer to 20-30%. That's a $300K to $450K loss for those home owners.
And the shocking thing is just how big the losses can be when homes cost >$1M. If you buy a $200K home and the market drops 10%, it's a $20K loss of your down payment. A lot of money, but something manageable for most people.
If you bought a $1.5M home and the price dropped 10%, that's a $150K hit to your pocket book. And 10% is a small drop in an overheated market like Vancouver. It wouldn't surprise me to see a drop closer to 20-30%. That's a $300K to $450K loss for those home owners.