Rising property costs caused Canada to ban foreigners from purchasing
Due to rising housing costs, Canada has prohibited several foreigners from purchasing property
According to New York CNN: Foreign investors can't purchase homes in Canada in 2023.
Foreign buyers cannot buy residential properties as investments for two years under a new Canadian law that took effect January 1. The law was passed due to a rise in Canadian home prices since the pandemic and politicians' belief that foreign buyers were responsible by buying homes as investments.
“The desirability of Canadian homes is attracting profiteers, wealthy corporations, and foreign investors,” said Prime Minister Justin Trudeau's party's campaign website last year. “Unused and vacant housing, rampant speculation, and skyrocketing prices are the result. People, not investors, own homes.” Immigrants and permanent residents can buy homes without citizenship.
In 2022, home prices fell sharply after rising sharply in 2020 and 2021. According to the Canadian Real Estate Association, average home prices in Canada peaked just above $800,000 Canadian in February and have fallen steadily since then, falling 13% from that peak. Like the US and other countries, the Bank of Canada has been raising interest rates, raising mortgage rates in Canada.
The CREA price index is still up 38% from the end of 2019, before the pandemic, but the group said inventory of homes for sale has returned to pre-pandemic levels.