Yes It Is High, But We Don’t Know Why

Price Tags

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A new study of Vancouver’s real estate published in the Georgia Straight has preliminary results indicating that while investment from offshore is impacting home prices in Metro Vancouver, the impact is far less than many think.

The two researchers, Simon Fraser University’s Andrey Pavlov and University of British Columbia’s Tsur Sommerville analyzed price changes in certain Vancouver neighbourhoods for three months after the July 2012 end of the federal immigrant investors program.

This program which ran from 1986 to 2014 allowed immigrants to move to Canada in exchange for a five-year loan to the federal government of $800,000. Approximately 120,000 people used this program to move to British Columbia.

The researchers found that when the program closed, property prices in the neighbourhoods studied declined by 2.5 per cent. However, the benchmark price for all residential properties in the region increased by 48.3 per cent  from 2012 to 2015

The Georgia…

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