Vancouver recently implemented the tax. 1. Prices tend to be sticky. Someone who thought he could get $1M a couple of months ago is still going to try and get

Vancouver recently implemented the tax. 1. Prices tend to be sticky. Someone who thought he could get $1M a couple of months ago is still going to try and get $1M now. The time to sale may not be immediate like in the past, but as long as the seller is willing to wait, the prices can remain high for a long time. There has not been a significant drop in price yet, and it is too soon to tell where the market will go. 2. Sales have slowed, but it is not yet clear why. It may be that foreign investors pulled out, but it may be that the locals stopped buying because they thought foreign investors would pull out. Similarly, it may be that the locals have stopped buying because they fear a government that changes the rules on a whim. Once these questions start to become more clear, and confidence is restored, we may quickly see a return to the way it was. Again, it is far too soon to tell.