Photo by Pete Williamson
A survey conducted by Leger Marketing reveals that Canadians are interested in buying homes south of the border.
Low prices and the strong Canadian dollar persuade them to purchase property in the U.S. and grow their assets. Analysts expect the U.S. economy to strengthen by next year, which will provide favorable conditions for buyers.
According to BMO Bank of Montreal, overall housing prices in the United States have decreased by 30% over the past four years; although, prices in traditional destinations for Canadian snowbirds have dropped even more: in Tampa, prices fell by 44% while in Phoenix — 54%, in Las Vegas — 57%, and in Miami — 49%.
About 31% of Albertans (more than residents of any other province) are interested in buying property in the U.S.. British Colombia follows Alberta with 28% and the prairie provinces with 27%. The same survey showed that men are more likely to make the purchase than women (29% of men compared 16% of women).
“Now, with the American economy and employment gaining strength, home sales should pick up and put a floor under soft prices,” said Sal Guatieri, Senior Economist, BMO Bank of Montreal. He also added that BMO expects prices to rise over time as the overhang of unsold homes eases, and that, beyond this year and in the long term, the U.S. greenback should strengthen as well. This would provide capital appreciation for Canadians who purchased U.S. property at a low price while the Canadian dollar was high.
“People are a little skeptical of what’s going to happen in the stock market,“ said Diane Olson for the Calgary Herald. She is a realtor specialized in finding U.S. homes for Canadians. She further explained: “They’d rather have a tangible asset. And when do you buy? You buy real low and I’ll tell you our properties are really low. And now that the [Canadian] dollar is over par you put all that together and people go ‘why wouldn’t we [buy in the US]?.'”