Canada in 2023 is closing its doors to foreign investors who want to purchase homes.
A new Canadian law took effect January 1 that essentially bans foreign buyers from buying residential properties as investments for two years. The law was passed because of a spike in Canadian home prices since the start of the pandemic – and some politicians’ beliefs that foreign buyers were responsible by snapping up supply of homes as investments.
’s price index is still up 38% from the end of 2019, before the pandemic, but the group said that inventory of homes for sales has returned to pre-pandemic levels. The real estate association voiced concern about the law, even with the exemptions for people who intend to move to Canada. “Canada has built a reputation as a multicultural nation that welcomes people from around the world.
also expressed concern that the ban could prompt retaliation by the United States and Mexico to prohibit purchases in those countries by Canadians, especially retirees looking for winter homes away from the Canadian winter. “Canadians purchase vacation and residential properties in many countries, but particularly in the United States,” said the group.
said Canadians are the largest foreign purchasers of American properties, with more than half of the properties purchased by Canadians in Florida and Arizona. “These provide Canadians with a place to spend the winter months and are a form of savings for Canadian retirees,” said the group. “If Canada places a ban on Americans owning property in Canada, we should expect them to respond in kind.”