The ban on foreigners buying housing in Canada has not affected either the cost of houses in the country or the volume of supply on the market, said Royal LePage, a real estate company.
The law prohibiting foreign citizens from buying real estate was introduced on January 1, 2022 for a period of one year, and then extended until January 1, 2027. The point of this measure is to try to reduce high prices in the housing market.
According to Karen Jolewski, executive director of Royal LePage, the measure taken did not affect prices for luxury real estate, as well as prices and supply volume in the budget housing segment. In her opinion, "this is an unnecessary policy and an unnecessary ban."
The increase in prices during the pandemic was associated with low interest rates on loans and high demand. And also with the fact that new construction did not keep up with demand.
"When interest rates started to rise in 2022, we saw a dramatic impact on sales activity," it fell almost overnight," Yolewski notes.
Source: BNN Bloomberg
