[osmo]

The foreign Ownership debate is a red herring. Foreign buys in Canadian RE still make up a small modest percentage plus these buyers are subject to more strict funding requirements them typical Canadians. Cheap credit and next to nothing downpayments have made housing unaffordable for most Canadians not outside investment.

The market will correct itself. I can't say it is a "free market" tho. No western Economies are, yes credit and money can move freely amongst different markets and regions but to say for example the Canadian property market is "free" is a joke. The Govt has underwritten the current boom. Banks would not be handing out these loans in a free system where they would be subject to the losses. Banks are handing out record loans to Canadians because they understand they are backed by the Govt via CMHC. If the Govt removed CMHC loan guarantees the banks would be forced to demand collateral which mirrors what foreign investors must pay (25-35% down).

Simply put Canadians are pricing themselves out of homes. Its always convenient to place blame elsewhere but current home prices are largely are own creations and can't be stuck on foreign individuals you can't put a name or face to.