Multiple forces are fuelling the Vancouver area’s real estate market, and it is unclear how much impact foreign buyers may be having on prices, according to Canada’s federal housing agency.
Low interest rates, robust population and employment growth, limited housing supply and the proximity of protected areas collectively known as the Agricultural Land Reserve are among the reasons real estate in the Vancouver region is so expensive, Canada Mortgage and Housing Corp. said in a report on Thursday.
On July 25, the B.C. government announced a 15-per-cent tax on foreign home buyers in the entity known as Metro Vancouver. The tax took effect on Aug. 2.