Fund manager David LePoidevin says the Vancouver real estate market may already be crashing.
The boss of the LePoidevin Group believes that his fund’s strategy of shorting some banks and non-bank mortgage lenders but not investing in the sector will prove to be a canny move with home sales in Vancouver slowing, even on the west side where supply is growing.
Although figures from the provincial government adds doubt to the impact of foreign buyers in the Vancouver market, LePoidevin told the HuffPost Canada: “I think the evidence now is that, we underestimated the amount of foreign capital that would come directly out of China … to Vancouver.”
LePoidevin says that a crackdown on Chinese citizens moving their money out of the country is the reason behind easing sales but notes that there are other signs of concern including regulators tightening lending controls and some lenders pulling back from the hottest markets.
Steve Randall has more than three decades of media experience encompassing online, newspapers, magazines, radio, and podcasts. He focuses on insights and news for professionals in finance, real estate, and legal services. Steve writes for multiple Key Media titles in Canada, United States, Australia, and New Zealand.
