Canadians Swarm to Phoenix
Phoenix and other warm-weather cities that have seen real-estate prices crater are newly popular among Canadians looking for second homes or investment properties.
They are lured by the weak U.S. dollar, historically low interest rates and rock-bottom property prices, dragged down by high unemployment and a wave of foreclosures. For the two years that ended in March, Canadians made up the largest percentage of foreigners buying homes in the U.S.—23%—up from 11% in 2007, according to the National Association of Realtors. Arizona and Florida are the focus of their interest, according to the Realtors’ group.
This new home in Gilbert is 2232 square feet and sells for $234,990!
Phoenix is newly popular among Canadians looking for second homes. “We know that when the economy recovers, the homes will appreciate in value, and the U.S. dollar will get stronger, so when it comes time to move our money back into Canadian dollars we’ll make more money,” said Mr. Donnelly. calling from a three-bedroom, two-bath house he hoped to snap up at auction for $100,000—less than half its last sale price. It ended up going to another buyer for $115,000.
In the past few weeks, a burst of fear that the world economy is on the brink of another recession has led the greenback slightly upward, with one U.S. dollar now buying 1.03 Canadian dollars.
“Its purchasing power, plain and simple,” said Mr. Donnelly of the strong Canadian dollar. “In the days when our dollar was 60 or 65 cents, I wouldn’t even be talking to you. The strong Canadian dollar has created a lot of opportunities for Canadians.”
Buyers are paying cash or taking out mortgages with U.S. banks or using their Canadian Credit Lines!
At Phoenix-Mesa Gateway Airport, flights from Bellingham, Wash., and Grand Forks, N.D., bring in Canadians from British Columbia who drive over the border for cheaper tickets, as low as about $250 round trip.
We also serve the Prescott Market!
Contact us with any questions you may have about buying or selling real estate in beautiful Phoenix/Scottsdale, Arizona.
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