2016 had been a roller coaster year for Canadian home owners and sellers. Increased property prices, short of houses and overvalued properties were the highlights of 2016 which could be blamed on foreign investors who enjoyed great returns since the country recovered from its recession period.

Home sales are down across the Canada and economists are predicting that these sales will go further down in year 2017 after some red hot couple of years. The responsibility now comes on federal government to dig deep into housing market to determine how much its prosperity depends on the foreign investors.

When it comes down to it, the reason why Canadians are not selling their homes is because they are afraid they won’t be able to afford a new more expensive home, meanwhile losing the equity on their current home in 2017.

According to a research, home sales are down by 2.8% in Canada while home prices are increasing day by day. Economists are predicting that this exponential growth is not healthy for the well being of the country.

Federal government is now trying to find out how much hold foreign investors hold in the real estate market conditions of Canada. Foreign investors, especially Chinese see Canada as a good investment in real estate in raising a family as compared to United States due to high ratio of crime rates in U.S. Property prices in China are unrealistic which limits in-country financial opportunities.

Majorly there are three types of investors i.e. families, individuals and group investors. Their aim is to get high returns and cities are the places which fulfill their requirement. Today more and more people are moving towards cities whether it is because of job opportunities or to improve the standard of living.

Economic conditions in Canada are more stable as compared to the rest of western countries due to low ratio of crime rates, xenophobia and economic crisis in U.S and Europe.  Therefore it is not wise to cut off foreign investors from investing in Canada who are willing to alleviate the housing crisis by investing in development projects. The cause of this housing crisis is the stagnant wages of people from smaller populations which has forced them to live in cities like Toronto and Vancouver. The overvaluation of property will put the country in sticky situation if economy doesn’t pick up the pace.

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