Affordability Complaints resulted in Real Estate Clampdown & Housing Crash Drills

As a result of damning allegations such as this,

How Foreign Investors Are Using Drug Cartel Tactics in the Canadian Real Estate Market

VICE – ‎Jul 25, 2016‎
Canada’s freakshow real estate market has been drawing a lot of international attention as of late. A few weeks back I talked to an infamous Wall Street short seller who is betting against one Canadian mortgage lender, and claims our housing bubble may …
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And overwhelming public complaints like these,

Metro Vancouver father blames housing market for ‘working poor’ lifestyle

CBC.ca – ‎Jul 25, 2016‎

Trevor Wilkie faces every day with the dread that he’s about to lose his family home in Surrey B.C.. The townhouse the single father rents with his two children and dog is for sale.

Chilliwack doctor worried he’s being priced out of MetroVancouver housing market

Globalnews.ca– ‎Jul 24, 2016
Many have been complaining about how our red hot real estate market in Metro Vancouver is pricing them out – but now a doctor from Chilliwack has decided to take on the government through an open letter.
Plus, online casual rental facilitators like Airbnb/Trip Advisor who are accused as part of the rental housing shortage problems …

Short-term Toronto house rentals jump 350% over last year, Trip Advisor says

CBC.ca – ‎Jul 25, 2016‎
“It’s considered one of the best cities now in the world and people are coming from everywhere, and I think this is a product of that,” said Toronto real estate agent Amanda Rix, estimating that a detached four-bedroom home in the Beach could easily …

The government gotta take some drastic actions very quickly, lest they get wiped out in the coming election,

Province to tax foreign buyers of Metro Vancouver homes

CBC.ca – ‎Jul 25, 2016‎
The B.C. government introduced legislation Monday that would add a 15 per cent property transfer tax on foreign nationals buying real estate in Metro Vancouver. The new rules would take effect Aug. 2 and apply to purchases of homes in Metro Vancouver, …
BC to target foreign real estate buyers with new tax 
BC to bring in real estate tax on foreign buyers 
Foreign buyers to face tax hike on Metro Vancouver real estate 

It does look like the government is serious about correcting the (socially sensitive) housing problems. They even asked banks to conduct “Housing Crash Drills” …

Canada watchdog tells banks to test resilience to sharp home price falls

Reuters Canada – Jul 26, 2016
The move, which builds on an existing requirement that banks test their resilience to a 30 percent decline in home pricesacross all regions, is the latest in a series of measures byCanadian authorities to counter a risk posed by soaring house prices …
Canada’s financial watchdog tells banks to test resilience to sharp drop in home prices 
Canada’s financial watchdog tells banks to stress test for 50% plunge in Vancouver home prices 
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What can we make up of the ongoing phenomenon? A market correction is in the making?

Maybe not.

They have done that many times before, the only difference is the previous “shows” were … milder. And all we know is the market continued to fly after a short stint of the “mild correction” – So mild like it never even happen before.

Long live Canadian Real Estate … Hail the “real” Lord!

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