• phone: 514-816-4178
  • fax: 514-933-2299
  • mobile: 514-816-4178

EN FRANÇAIS

asebe@sutton.com

Call 514-816-4178

Blog by alexandre sebe

<< back to article list

Upward trend continues for Canadians buying U.S. real estate

Upward trend continues for Canadians buying U.S. real estate

DAVIE;FL - MARCH 24: A sign advertising new homes for sale is seen on March 24;2010 in Davie;Florida. The Commerce Department announced that new home sales fell 2.2 percent in February.
DAVIE;FL - MARCH 24: A sign advertising new homes for sale is seen on March 24;2010 in Davie;Florida. The Commerce Department announced that new home sales fell 2.2 percent in February.
Photo Credit: Joe Raedle , Getty Images

 

TORONTO- Canadians could have sunk their money into RRSPs and TFSAs, but it looks like they’d rather invest in U.S. real estate instead.

For the fourth consecutive year, Canadians account for 23 per cent, or the largest percentage of foreigners buying homes south of the border. That’s up from seven per cent in 2007. For the year ending in March 2011, foreigners bought $82 billion worth of residential real estate, up from $66 billion in 2010.

A survey released last year by the U.S.-based National Association of Realtors or NAR, titled Global Perspectives, outlines issues that drive Canadian buyers to look at southern investment opportunities.

The NAR survey says Canadians flock to buying U.S. properties because U.S. homes are generally less expensive, viewed as a secure investment and the U.S. market offers rental opportunities and long-term appreciation potential.

However, Jed Smith, managing director of quantitative research for the NAR says a strong Canadian dollar and searching for milder winters is still the biggest draw.

“I suspect they’re coming south for the sun,” said Smith. “At a time when American home prices have been going down in recent years, the Canadian dollar has been buying them a little more, so that’s been a double advantage to the Canadian buyer is that they get a little more house for the same money.”

Smith says the strongest purchases are in Florida and Arizona. In 2010, Canadians bought about eight per cent of the homes sold in Florida. For almost every week since the beginning of 2009, a Canadian buyer has purchased a home worth at least $1 million in Maricopa County, Arizona. 

 
But other areas are also picking up. Canadian investors are jumping on properties in the Puget Sound regions of Washington State, northwest Montana, Las Vegas, Texas, Georgia, the Carolinas and Vermont.

 
A new survey to be released on Tuesday by the Bank of Montreal also supports that trend.


It says one in five Canadians are still considering purchasing a home in the U.S. The survey says 20 per cent of B.C. residents would consider purchasing in the U.S., Ontario coming in second at 18 per cent and Alberta in third place with 17 per cent. 


Larry Moser, regional sales manager for BMO says Canadians are waiting longer to purchase a home, but the interest is still there. 


“What we found is that we have an improved U.S. housing market, by improved, it’s not fully recovered by any stretch of the imagination, but we can see that it’s probably hit the bottom. That’s one of the reasons why Canadians have peaked their curiosity in terms of maybe now is a good time to go and look at U.S. housing.”