A recent study done by the National Association of Realtors showed that Canadians have purchased 23 per cent of all real estate sold in the United States in the year ending March 31. That is more than any other foreign country. Mexicans came in at a distant second with only ten per cent followed by China, the United Kingdom and Germany, all purchasing around 8 percent of the American housing market.
Association president Vicki Cox Golder, owner of Vicki L. Cox Real Estate in Tucson, Arizona says. "While all real estate in the U.S. is local, the same is not true for property owners." She also adds that, "A large majority of realtors report the changes in value to the U.S. dollar have had a strong impact on the international real estate business. In addition, perceptions abroad about trends in the U.S. real estate market have led many international clients to believe purchasing a home in the U.S. is more affordable than in their country and holds more value."
The results of the survey done by the National Association of Realtors also showed that the average single-family home sold for $219,400 US, down from $247,100 US in 2009. With a combination of falling home prices in the U.S. as well as a strong Canadian dollar, the incentive for international buyers is most certainly there. Most of the foreign purchases, a total of 53 percent, occurred in the 'sun belt' locations of California, Texas, Arizona and Florida, but purchases were made in 39 of the U.S. states in so far in 2010 and if prices stay where they are and the Canadian dollar continues to climb, 2011 is very likely to bring the same outcome.
With housing prices down with our southern neighbours and up in our own country, it is not difficult to see why home purchases in the U.S. are being viewed as investments. Many purchasing homes are doing so with the idea of using these properties as rental income. Even the new stricter rules and bank regulations have not stopped many people from purchasing homes to turn a profit. Purchasing a home is a large personal investment many will make at some point in their lives. If you are one of the millions of Canadians considering a home purchase, now may be a really great time to look at property south of the border and get in on a good opportunity.
