Foreign owners do impact Vancouver home prices say academics
Steve Randall
Mortgage Broker News
While government agencies are trying to assess the whether foreign ownership of homes has a real impact on the market, a study by the Simon Fraser University in BC says that it has proof that it does.
Business professor Andrey Pavlov and this team looked at data from a now-closed scheme to encourage foreign investors to Canada and how things changed when it was scrapped.
The Canadian Immigrant Investment Program ended in 2014 and for around a year after that house prices dropped in neighbourhoods popular with Chinese buyers.
“This is as good evidence as we can get on the impact of foreign ownership on the real estate market. And the conclusion is: yes, there is an impact,” Pavlov told the CBC.
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