Tax on foreigners leaves Vancouver real estate exposed

CBC published a Thomson Reuters story that quoted Tsur Somerville, a UBC business professor, for a story on Vancouver real estate.

Since Canada’s economy is more dependent than the U.S. economy was prior to the financial crisis, tanking real estate prices could see huge job losses.

Somerville says if Vancouver were to experience a sudden spike in unemployment, the real state sector would most likely be the cause.

“It’s not just that there’s less buyers in the real estate market: you’ve got all these people whose jobs are dependent on the over-exaggerated real estate market. They’re taking a hit, too,” he said. “Whether they be realtors or people in construction or stores that sell granite countertops or Mazerati dealerships, they’re going to see an effect from it.”