Canadian Purchasing Power is shifting to US properties?
The real estate business in Canada is hugely influenced by the foreign investors. Currently, the property prices are facing a huge surge. The rising valuation of the loonie may make Canadian housing markets quite safe for real estate investments. The skyrocketing prices have, however, led the Canadian investors to shift their focus to US properties instead. They are therefore making a huge impact in the US housing market.
As compared to the previous year, 2017 saw almost double a number of investments from the Canadian buyers. This is as per the data obtained from a survey carried out by the US National Association of Realtors (NAR).
There has been an increase in the number of purchases as well as the average purchase price paid by the Canadians in US property market. This year, there was a clear 25% increase in the number of properties bought by the Canadians as compared to the previous year. There was, however, a spectacular 69 % increase in the average prices paid for the properties. This year, the average purchase price among the Canadians stands at the US $560,000.
The market trends in housing properties are influenced directly as well as indirectly by some factors. Therefore, everyone may not be able to follow what is happening in the market. This is when the websites created by RealtyFocuz come handy. These websites are specially built for realtors and agents, allowing the consumers to correctly understand the market trend as well as make better investments. For example, Canadians are not shifting to the US only to evade the surging prices. Instead, they are making the best out of the situation by selling their properties back home for a high amount and investing the same in the US for huge chunks of real estate.
Economists have mentioned that when compared to the real estate in Canada, the US real estate business appears to be a mere bargain. The house prices in the US have been increasing but not as steeply as in Canada, mainly Vancouver and Toronto. The housing estates saw quite a rapid increase and are almost unattainable now. A price surge of this extent hasn’t been seen anywhere in the US so far. This may be the very reason why the realtors in the US are resorting to inventory shortages for a price hike.
The inventory shortage does indeed show effect with an immediate increase in the prices. However, despite this, the price hike in the US is still lesser than in all of the five countries including Canada. Canadians may be unbeatable in the US market mainly because of their added advantage with the equity built back home. Canadian investors are very much hefty in their pockets due to the high valuation of their properties back home. With so much free capital, they are naturally the most influential investors in the US property market.
The Chinese have always been the major investors in US real estate business. Therefore, being next to just the Chinese is a huge development among the Canadians. The Canadians spent a total of $19 billion in 2017 while the Chinese spent a whopping $ 31.7 billion.