You would think that with all the changes made by gov't that home prices should drop, but out here in the far flung Vancouver suburbs of Maple Ridge and Mission, listings are also dropping like a rock.  That might just be expirations before Christmas season or sellers giving up, but it could also be purchases.  In the past when I've noticed a drop in listings like that, it usually precedes a fierce runup in prices.  Don't forget that it is not only income but also stored wealth that buys houses. Granted, young first time buyers usually do it only on income and a minimal downpayment but lots of move ups and other groups use wealth.