The U.S. vs Canada Real Estate Market

U.S. vs Canada real estate market

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The United States and Canada have had a mostly tolerable relationship. A bond that could be most often described as one of close siblings; of intermittent jealousy, rivalry and just proximity.

But what about real estate? Do the two countries share in their markets or do they go their separate ways, determined to outdo the other?

Let’s take a look below at the U.S. vs the Canada real estate market and how it plays out in the real estate world:

Canada is one-upping U.S. real estate

Yes, it seems no sibling is happier than when they can take advantage of the other’s misfortune and that has definitely played out with the United States’ recent financial crises and downturn in the economy, making properties to the south more attainable than ever.

But it doesn’t come without a few leaps and hurdles. And before our neighbors to the north start jumping on the American real estate market and eating it up like the proverbial maple syrup on hotcakes, they should research what purchasing U.S. real estate properties entails; oftentimes it is difficult to secure a mortgage, and if you are planning on using the property as a vacation home and also rent it out, you may have to file a U.S. tax return (Egads!) and also hire a property manager.

However, there are ways to reduce the issues, if for example you purchase the home full price and cash in hand will avoid a lot of the hassle of mortgages.

Retired Canadians snapping up U.S. real estate

It’s true, many retired Canadians like to seek out warmer climates, especially when on their sixth month of snow and ice, and head in the direction of the American south, so when news of property values tanking and the Canadian dollar reigning hit, it didn’t take long for those vacationers to start making appointments and touring properties in hotspots like Arizona, Florida and California, which coincidentally had some of the biggest hits.

According to national statistics, Canadians accounted for nearly 25% of all foreign U.S. property purchases in 2012, so obviously this misfortune for the United States has been a boon to investors across the border.

Continuing real estate trends for 2013?

The good news for the United States is that they are starting to see signs of an economic upturn, and not a moment too soon.

Surveys from as recent as February of 2013 demonstrate this improved direction with the reduced numbers of available properties as well as a rise in new construction.

If these trends continue, as well rising strength and confidence in the U.S. dollar, it will slow the collection of properties bought by foreign investors.

At the end of the day, the silver lining to the numbers of Canadian investors is that indeed, having homes snapped up helps reduce the backlog of entire subdivisions filled with abandoned or overbuilt homes, improves the financial stability of having new owners as opposed to those who defaulted on their loans.

Canadians need to do their homework, though, before they head down to states filled with palm trees, balmy breezes and ocean front property. At the very least it wouldn’t hurt to speak with a tax specialist in regards to purchasing and renting properties.

But with the employment numbers on the upswing, it will only help boost the real estate market to catch up, so the savvy Canadian investor better get on the ball (or puck) pretty quick, before those available properties and unheard of prices vanish quicker than sightings of Ogopogo.

If you plan on buying or selling a home, visit today.



Tiffany Walker is a former real estate agent who now enjoys freelance writing. She primarily focuses on the issue of real estate investing. When she isn’t writing, Tiffany enjoys dabbling in graphic design projects and oil painting.

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