As progressively more people abandon Toronto's housing market thanks to unaffordable prices compounded with record high mortgage rate inflation, prices are finally starting to slide somewhat to match months of declining sales activtiy.

But while this may be the case for average homes (which are still exorbitantly priced at $1.182 million), the GTA still has a growing share of luxury houses reserved for the elite, and prices for these properties remain high and are rising still, jumping 3.7 per cent from January to June.

But, stakeholders are concerned about other trends that are emerging thanks to newly-enacted policies.

Real estate brokerage Engel & Völkers Canada, which has some of the bougiest of listings, purports in its 2023 Mid-Year Market Report that lawmakers should be concerned about the high-end buyers that this sect of the market caters to, who are now being shut out thanks to the recent foreign buyer ban and high non-resident speculation and vacancy taxes.

E&V also notes that homes in the range of a whopping $10 to $20 millon are sitting on the market for longer — 112 days as of June, compared to 40 days at the same time last year — which again, they blame on the act, as "foreign buyers as the primary market for this segment."

"The foreign buyer ban is having unintended consequences on high-profile professional athletes and executives, despite the federal government introducing amendments to the act, allowing some work permit holders to purchase homes and vacant land," the firm writes.

"Provincial taxes, such as the 25 per cent non-resident speculation tax in Ontario, continue creating barriers for high-net-worth professionals who desire to purchase a home while working in Canada. Instead, these
professionals are essentially being forced to rent."

While this inevitably could impact brands and companies in the city looking to hire top talent, it is a stretch for the typical citizen to feel bad for the ultra-rich who, if purchasing a multi-million dollar home here, are being granted a fortunate exception to the rule and also ostensibly have the funds to cover a higher tax rate.

The foreign buyer ban that kicked in on January 1 is, of course, intended to reserve homes for people who actually live in Canada, and to help make prices for residents at least a little less outrageous by barring wealthy foreign nationals from bidding them up, letting them sit empty as prices rise and/or flipping them for more.

The temporary legislation is set to last two years.