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December 22, 2014

Canadians See U.S. Home Bargains Slipping Away

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Canadians See U.S. Home Bargains Slipping Away

Canadians have had a big appetite for U.S. properties in recent years while housing values in many markets across the U.S. took a tumble. But now as many housing markets pick up, bargain-hunting Canadians see opportunities closing and are rushing to take advantage of investment or getaway properties before these properties inch even higher, CBC News in Canada reports. 

Canadians account for 24 percent of foreign home buyers in the U.S. — the largest share — and Canadian buyers account for more than double the rate they did in 2007, according to data from the National Association of REALTORS®. 

“As the U.S. market tanked over the past couple of years, some Canadian buyers took advantage of an especially fortuitous confluence of events — a dollar that had moved up to par, deeply-discounted asking prices, and little competition from an economically battered U.S. populace,” CBC News reports. “Many Canadians who bought in the U.S. even a few months ago are starting to see a return on the investment, but those who are still contemplating a purchase need to tread carefully.”

But with falling inventories in the U.S. and rebounding home prices, Canadians are seeing the bargains slipping away, particularly in the two states where they tend to be the most active — Arizona and Florida. 

Canadians are finding themselves in more multiple-bid situations in these recovering states and paying more than what they would have a few months ago. Still, many Canadians are finding they have an advantage: Many American home buyers continue to struggle to obtain financing due to banks’ tightened underwriting standards, while many Canadians are making all-cash offers for homes to win multiple-bid situations.

Source: “Canadian Buyers Face More Competition as U.S. Housing Recovers,” CBC News (Aug. 16, 2012)