Two Years Foreign Buyer Ban in Canada Will it Decrease Home Prices

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A two-year ban on foreign individuals buying residential properties in Canada is unlikely to decrease record-high home prices and may only have limited impact. Non-resident buyers make up a small percentage of the Canadian real estate market, with overseas investors owning only 2.4% of condominiums in Toronto and 2.3% in Vancouver. The new legislation targets foreign investment and has exceptions for those temporarily residing in Canada, refugees, and international students. The real reason for high real estate prices is due to basic economics of high demand and low supply, driven by low-interest rates and a low supply of housing.