4 ms·
housing markets aren't disjoint this way. people will consider moving up or down a couple tiers if it makes financial sense (or they don't have a choice). if th
by leetcrew 5y ago
housing markets aren't disjoint this way. people will consider moving up or down a couple tiers if it makes financial sense (or they don't have a choice). if the market for mansions is particularly tight, you will see rich people start buying condos instead, driving up prices in the midrange. some professionals that would otherwise be targeting those condos will be forced to consider more marginal homes in the low end, moving the price there as well. the same thing can happen in reverse if demand dries up at the high end, but you don't see that as often.
- tomatowurst 5y ago> if the market for mansions is particularly tight, you will see rich people start buying condos instead a west vancouver home easily costs above $10 million, you think they are going to move into a penthouse in Yaletown as their primary residence and thus driving condo prices up? this makes no sense, people aren't selling their west vancouver home to downsize they are in a position to get even more leverage from the bank and expand their portfolio and likely own homes in North Vancouver and/or abroad already. the people selling their homes for ~$1MM are downsizing because they can't buy a home at that price range anymore