Loans make things more expensive, and houses are no exception -- so if government wants to make housing more available and more affordable, thus keeping the construction industry more viable over the long term, they would tighten credit up even more. This is a distinct issue from BoC policy rates being needlessly high at the moment.gizmo8 wrote: ↑Mark guess who caused the slow down...Ottawa..there are rumblings that its slowing down way too fast and if needed they might loosening the borrowing requirements and even lower interest rates.Real Estate and resources are Canada's golden goose and the last thing they would like to see is 100,000 unemployed construction workers and related industry jobs tied to real estate.Rich chinese are not even affected by the new rules Ottawa set forth,it only alienate the working poor of Vancouver from buying a home and this is not what Ottawa wants.They want to stop speculations but in reality they are causing those who are the side lines to rent even longer with the tight lending rules.Here is recent article about Toronto,even though there are about 30,000 new condos ready to come into the market rental space is still very very tight,that means those who cant qualify for a new condo must rent so in truth the speculators who own units already have no reason to sell quickly if the rent covers the mortgage,fees and property taxes.
http://www.thestar.com/business/real_es ... eport.html
As for "rich Chinese cash buyers", haven't we been over this before? They're not even enough of the market to be of any statistical impact.