Canada's Real Estate Inflation Problem: A Supply or a Demand Issue? In New Zealand a Clear Answer - Foreign Buyers are Hit Hard Beyond a Meaningless, Insignifcant Tax

https://nationalpost.com/news/world/new-zealand-to-ban-foreigners-from-buying-homes-after-spending-splurge-by-millionaires-crowds-out-locals

At least one country has stuck its neck out and realized that demand for housing far outweighs housing supply, as that incremental demand comes from outside of its own borders.  Rather than politicians (over) promising, debating, and feet dragging when it comes to domestic "affordable housing solutions", New Zealand has woken up to the demographics and drivers of such first world real estate markets.

With This Much Going Against the "Canadian" Home Buyer, It Is Now Plainly Obvious the Real Estate Markets in Canada's Big CIties Are In The Hands of Foreign Purchasers

With every governmental regulation at hand raising stress test levels, increasing interest rates and amount of downpayments and the realtor industry allowed to behave in its underhanded tactics, the Canadian consumer is faced with increased difficulty and curiously higher an higher home prices.  How can these two results happen?

SUPPLY is NOT the issue in the Canadian housing market.

With NO restricitons whatsoever on new construction or resale units for foreign purchasers (even Australia has regulation regarding this, with foreign purchasers only able to purchase new construction to foster the construction industry) and clearly Canadian purchasers being driven out of the market in the hopes of "cooling" the real estate market, it is plain to see that the DEMAND from foreign purchasers is there like a firehose unable to be turned off.

The government will continue to hammer the average Canadian consumer; (to "save us from ourselves"); however, if from outside of Canada looking to park some wealth in hard assets like real esate and in a first world country where the rule of law is predictable, then fill your boots as they say.

The real estate industry in their selective, subjective, manipulated and incomplete data will continue to lead you to believe that only a small number, around 5.0% of purchasers, are of foreign interest.  Spend some time in Vancovuer or Toronto and you will easliy conclude that is an aboslute lie and it just goes to show you the lengths of the cover up that is happening under our noses.

In other words, in simple supply-demand economics, the demand side is the issue, and it is not coming from Canadians.

http://business.financialpost.com/real-estate/mortgages/hike-to-mortgage-qualifying-rate-fresh-blow-to-home-hunters-buying-power