Perception of foreign ownership heavily influences housing prices: CMHC

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TORONTO — The Canada Mortgage and Housing Corporation says homebuyers in Toronto, Vancouver and Montreal believe foreign buyers are heavily influencing their markets.

A CMHC study surveying 30,000 recent homebuyers in the three cities says 68 per cent of Vancouver respondents, 48 per cent of Toronto respondents and 42 per cent of Montreal respondents believe foreign buyers are driving up home prices.

The study comes after Statistics Canada recently reported that foreign buyers only own 4.8 per cent of Vancouver properties and 3.4 per cent of homes in Toronto.

CMHC’s research also found that in Vancouver the influence of investors is perceived to be stronger than supply constraints and demand, but in Toronto that influence is in line with such factors.

The study also reveals that 48 per cent of buyers in Vancouver and Toronto spent more than they budgeted on their home, but only 24 per cent of Montreal buyers exceeded their planned total.

In Toronto and Vancouver, CMHC says 55 per cent of their respondents experienced a bidding war, compared with 17 per cent in Montreal.

 

The Canadian Press

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