Part 4/9:
Recent attempts at similar measures in Canada have highlighted the pitfalls of such policies. In cities where foreign purchases were curtailed, initial drops in housing prices were noted. However, these declines were often fleeting. As domestic sellers adjusted their expectations based on new market conditions, many chose to withhold their properties from the market altogether rather than sell at lower prices. This resulted in a scarcity of available homes, ultimately pushing prices back to their previous levels, negating any short-term gains.