The housing market has gone to insane levels. Certainly it's not all due to foreign buyers, but why as a citizen would I want to compete on the global market for our homes? The answer is I never want to complete globally for something that should sell locally. But government never wants to stand in the way of inflows of foreign money.
Anyone I know with a home in Canada expresses the sentiment, 'thank god I got in when I did or I'd never own a home.'. And they're right, they shouldn't be, but they are.