[EXCERPT]
Ken Peacock, chief economist and vice-president of the Business Council of British Columbia, said speculators are just one part of the problem. He thinks the government tried to slow the rise of home prices, and maybe even level them off, but by using the tax to change public behaviour and raise revenue, the government has placed themselves in “a tricky situation.”
“B.C. is a desirable place to live. [There are] land constraints in the Lower Mainland, steady inflows of immigration, inter-provincial migration. Add that all up, and there’s a fair amount of demand … The fundamental is that there is excess demand over supply in the housing which will drive up prices over time.”
