To be clear, I did not say that foreign investors represent a significantly high share of buyers in Toronto than 4.9%. That is a complete falsehood. I have been clear that the I believe the percentage is significantly lower than this in the $400,000 to $2M range in the Toronto resale marketplace.
I do believe that in the sale of new condominiums from floorplans in yet to be built developments it is significantly higher than 4.9%. I believe that a foreign buyer tax will greatly influence this marketplace to the negative. It is this marketplace in Toronto that is so important to the Canadian Economy. Damaging this marketplace will damage the Canadian Economy. I cannot say for certain that it will precipitate a recession but the ripple effect of such a slowdown caused by a foreign buyer tax may have repercussion that could cause a nationwide recession.