I think a bigger factor than the foreign buyers' tax is the CRA cracking down on flippers claiming the principle residence capital gains exemption.  A huge industry has developed of individuals buying, renovating and flipping houses to large profits that they shelter from tax.  Now that the CRA is tracking this more closely, the flippers can expect to pay tax and this significantly reduces or eliminates their profits on the flip when other costs are factored in.  I have seen stats that as much as around 26% of house deals in the GTA are domestic speculators.  This is much bigger than foreign buyers.  On almost every street in or around downtown there are houses undergoing extensive reno's for flipping.