Foreign homebuyers ban begins: What it means for Simcoe County and York Region

Canada is now banning foreign homebuyers as the nation looks to cool the housing market.

Areas across Central Ontario saw the average home selling above one million dollars over the last few years, pricing many people out of the market.

Although average home prices in Canada have since dropped, affordability and supply of housing remains an issue.

The new ban will target foreign buyers from purchasing a residential property that includes detached homes or similar buildings, semi-detached houses, rowhouse units, residential condominium units and other similar premises.

"The impact of this for Simcoe County and Barrie is going to effectively nill," said Luc Woolsey, the Barrie and District Association of Realtors president.

According to Woolsey, foreign buyers make up under one per cent of the market. He believes the region needs to grow with the rising population and expand home construction.

"We need to lessen red tape, we need to lessen development charges, and we need to find ways to make it more profitable and easier and faster for builders to build inventory, and that's the only way we can solve this problem," said Woolsey.

In York Region, Century 21 Heritage Group reports a similar issue.

Eryn Richardson, a managing partner with the company, says Newmarket currently has 76 homes on the market, where a healthy number would be around 300.

"it's a bit of an equilibrium in terms of pricing but in terms of demand and supply theya re both low," said Richardson.

Richardson noted that the cooling market could also be due to rising interest rates which could have aided in the average price of a home in York Region dropping.

The ban does come with a few exceptions, which include those in Canada with temporary work permits, refugee claimants and international students who meet specific criteria.

Non-Canadians breaking the rules could face a fine of up to $10,000 and may be required to sell the property.