The way it works is the local Chinese get into bidding wars while on the phone relaying all the information back to China and Beijing as the seed money is all coming in from abroad. The local Chinese get paid to buy residential real estate for the foreign Chinese. This is on ALL residential real estate not just new or newer.

What you say is mostly true as one of the biggest reasons was and is the stock market. The stock market has seemingly become 100 percent rigged since the dead cat bounce back in 2009. Also gold and silver have also become rigged. Presently the stock market is the most overvalued in history, accounting changes such as mark to market and the like, throwing bad stocks out of the DOW and putting in good ones to skew the indexes to brainwash the public never worked as no one except the FED and the bankers bought stocks. Share buybacks will be the cause of the greatest stock market crash in history in America as paying 4 to 5 times what a share is worth means big loses and insolventcy… chapter 11. With no alternate investments the feeble Millennials in the GTA and the Vancouver area copied the Chinese. Great on the way up by like all ponzi’s 95 percent of the ponzi holders lose on the way down.

Sweet, except capital flow is the basis for all speculation. Lower interest rates mean more capital. Did you think rates were lowered because it’s cuter to have smaller numbers? The primary reason rates are lowered is to stimulate the economy. They want people to borrow for more expensive homes, cars, etc.. It’s a joke to assume the opposite isn’t true.

The part that’s missing for a stats major is market mechanics. I’m a quant, so my work is literally half stats, half economics. This is a well understood trend, and Goldman Sachs just released a research note that was pretty close in conclusion about the rising rates and real estate prices in the US.

Mark my words, a major bank is going to release this exact note in 4 weeks. Then everyone will gasp, and accept it.