In the month following the adoption of a foreign buyer’s tax in Ontario, just 4.7 per cent of home sales in the Greater Golden Horseshoe involved non-residents, according to provincial data released Tuesday.
The figures track the number of so-called foreign buyers involved in the roughly 18,282 real estate transactions that took place in the region between April 24 and May 26.
It’s unclear, however, whether the 15 per cent levy on non-resident buyers, which came into effect on April 20, had an influence on foreign speculation.
It’s the first time the province has released such figures.
So it is clear that it isn’t the foreign buyer who is responsible for distorting the real estate market but rather local speculators who leveraged and over-leveraged themselves to make a quick profit. This practice is clearly unsustainable and the real reason the price of real estate has fallen has more to do with unaffordability that is keeping a record number of Ontarians from buying a home.