TREB's Statment on Foreign Buyers
In an effort to further the research into foreign buying activity, speculative buying and selling (“flipping”), and ownership of more than one property, TREB analyzed aggregated annual property sales, and aggregated residential data provided by the Municipal Property Assessment Corporation (MPAC) and Teranet Inc. (Teranet) for the Greater Golden Horseshoe (GGH), specifically between 2008 and April 2017.
A summary of TREB’s key findings from an analysis of the data:
- The number of buyers with a mailing address outside of Canada is well-below one per cent, regardless of the year. Most of these buyers have a mailing address in the United States.
- Between 2008 and April 2017, the average share of foreign buyers in the GGH was 2.3 per cent. The share was 2.2 per cent in 2016 and 2.6 per cent for the January through April period in 2017. The majority of foreign buyers – 87 to 90+ per cent – purchased their home as a place to live: 91.5 per cent in 2016 and 88 per cent January through April in 2017.
- The trend from 2008 to April 2017 suggests that the share of foreign home buyers has remained low. The results also follow the results from earlier released data from an Ipsos survey of TREB Members conducted in the fall of 2016. The Ipsos survey results estimated that 4.9 per cent of transactions undertaken between the fall of 2015 and the fall of 2016 were accounted for by foreign buyers. The Ipsos survey results had an estimated margin of error of ± 2 percentage points, 19 times out of 20.
- Between 2008 and April 2017, homes bought and sold within a short period of time – within one year of the original transaction – by domestic or foreign buyers accounted for a very small share (less than five per cent in 2016 and approximately seven per cent between January and April 2017) of total transactions.
- TREB analyzed the ratio of property owners that owned more than one property in the GGH to the total number of properties. As of April 2017, this was a relatively small 6.2 per cent of total properties.