The Globe and Mail reports in its Tuesday edition that investors account for one-fifth of all home purchases in Canada, fuelling the debate on soaring real estate prices and demand for housing.
The Globe's Rachelle Younglai writes that since COVID-19 started, investor buying has rebounded to 20.1 per cent of all purchases in the country, with a higher share in Toronto and Hamilton, according to the Bank of Canada's financial system review. That is lower than during the tail end of the previous real estate boom, but higher than in prepandemic days.
With the Canadian Real Estate Assoc. reporting the national average home price is 38 per cent higher than a year ago, real estate investors are being accused of driving up prices. However, housing experts and economists have not been able to quantify the investor effect on pricing, even though such a large volume of investor buying is bound to have an impact.
BOC spokesman Alex Paterson says, "Determining the precise level at which investor activity should be a cause for concern is difficult and requires further study."
A Canada Mortgage and Housing Corp. spokesman says, "When investors go into the market in a big way, they can drive up the house prices."
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