Economics are tied to people. If you want to know why economic fundamentals changed, look at the demographic changes first. The demographics of Vancouver are undergoing rapid change, the demographics of buyers today are vastly different from buyers 20 years ago. The people running the market today and buying are often coming in with cash from the developing world instead of coming in from the developed world looking for new opportunities and a change of scenery. Different cultures, different mentalities, different mentalities, different demographics. Buyers today for the most part are very culturally different from buyers 20 years ago. They have a very different idea of what is large, what is cheap, what is nice, what is fair, what is acceptable and it is them running the market and the market has responded to them. Vancouver is just adjusting to its demographic changes imo, to the detriment of locals with different standards. This is what you get with rapid changes in demographics. Blame the feds. All of this went into my personal analysis of the region and why I threw in the towel, things cant get better because many of these things are permanent societal changes to this region...and the pace of change on top of it is only going to be increasing.
Want to know why economic fundamentals changed (if they in fact did). Look at the demographics. The two are tied together. Economics after all is a social science.
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Economics is the study of social behavior guiding in the allocation of scarce resources to meet the unlimited needs and desires of the individual members of a given society.
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