Hello. I called this exactly in August 2016 when BC initiated the tax. Resale prices will continue to skyrocket because foreign investors are not a significant factor in the resale/existing stock of housing. Local buyers took a breather of hope, which slowed things for 6 months. Now its full speed ahead.
What the foreign investor tax did accomplish is to slow down the sale of new unbuilt units, which is significantly influenced by foreign buyers. Ultimately less developments will happen in Vancouver. Less supply will contribute more to skyrocketing rents and prices. Toronto and environs should take heed.
“Impact of B.C.’s foreign buyer tax wanes as March sales surge almost 50 per cent”:http://vancouversun.com/