In a new report, Benjamin Tal and Andrew Grantham said that the level of foreign ownership of homes is a small proportion of the market, although they noted that there are larger levels of Canadian residents receiving funds from overseas relatives to buy homes.
The report also dismisses comparisons between the Canadian housing market and the U.S. market before the financial crisis. The economists point out that the two are very different not least because overbuilding in Canada is not the issue that it was south of the border.
Highlighting the value of the condo sector in ‘balancing’ the market, the report also said that interest rate increases could lead to a sell-off by investors which is unlikely to cause a crash but could damage confidence in the sector and wider economy.
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The level and impact of foreign investment in Canada’s homes has been brought into question by two economists at CIBC.