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China's Slowing Economy WILL Effect Vancouver's Housing Market!

China's Slowing Economy WILL Effect Vancouver's Housing Market!
Metro Vancouver's housing market is more sensitive to the ups and downs of China's economy than most people believe and could be more important than even immigration trends. A study by Robin Wiebe of the Conference Board of Canada tracked China's GDP performance and the Vancouver housing market. Wiebe notes that, unlike Australia, offshore investors don't have to live in Vancouver to speculate in the housing market. So, when China's economy is doing well, there are more investors who can afford to buy real estate in Canada.
Wiebe's research shows a clear correlation between China's GDP and Vancouver resale housing prices. For instance, average resale prices in Vancouver rose in the double-digits in 1992 and 1993 when China's economy was hot. By 2010, as the China economy was posting 11% growth, Vancouver resale house prices rose 15%. This year, as China's economy cools, Vancouver house prices are falling. "The shadow from the east has long loomed over the Vancouver housing market and some believe that a slowing Chinese economy could signal a period of weakness ahead," Wiebe comments.
Here is a copy of the article:
http://www.conferenceboard.ca/economics/hot_eco_topics/default/12-07-06/slowing_chinese_growth_weighs_on_vancouver_s_housing_market.aspx
China's Slowing Economy WILL Effect Vancouver's Housing Market!

Metro Vancouver's housing market is more sensitive to the ups and downs of China's economy than most people believe and could be more important than even immigration trends. A study by Robin Wiebe of the Conference Board of Canada tracked China's GDP performance and the Vancouver housing market. Wiebe notes that, unlike Australia, offshore investors don't have to live in Vancouver to speculate in the housing market. So, when China's economy is doing well, there are more investors who can afford to buy real estate in Canada.

Wiebe's research shows a clear correlation between China's GDP and Vancouver resale housing prices. For instance, average resale prices in Vancouver rose in the double-digits in 1992 and 1993 when China's economy was hot. By 2010, as the China economy was posting 11% growth, Vancouver resale house prices rose 15%. This year, as China's economy cools, Vancouver house prices are falling. "The shadow from the east has long loomed over the Vancouver housing market and some believe that a slowing Chinese economy could signal a period of weakness ahead," Wiebe comments.

Here is a copy of the article:

http://www.conferenceboard.ca/economics/hot_eco_topics/default/12-07-06/slowing_chinese_growth_weighs_on_vancouver_s_housing_market.aspx

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