Now we know why the real estate market is cooling in Canada; Canadians are flocking to the US to buy properties. From today's Wall Street Journal:
...Canadians started to snap up property in the U.S., drawn by the buying power of the newly strong Canadian dollar and the depressed prices of American real estate. The largest proportion of foreign buyers of U.S. homes from May 2007 to May 2008 -- 24% -- were Canadian, double the percentage a year earlier, according to a recent report by the National Association of Realtors.
Most Canadian buyers head for the Sunbelt, with Florida accounting for a third of all of their purchases, the report said. The Realtor group estimates there were 7,200 Canadian buyers of Florida homes in the period covered by the report, more than double the 3,500 a year earlier. In some Florida resort communities, so many Quebec residents have bought second homes that French is now commonly spoken.
French speaking Canadians are so common in many condo communities that association newsletters and community announcements are all written in French and English. But not all Americans are ready to give up their burgers and fries for baguettes, pâtés and crudités.
From the WSJ:
That bothers Ethelreda Farnsworth, a retired fashion coordinator from Pittsburgh who has spent winters at Hawaiian Gardens since 1985. She says she no longer attends events like the annual New Year's Eve celebration because she doesn't speak French and doesn't know what her neighbors are talking about. Instead, she and the remaining American residents gather for a party in her two-bedroom condo. "We feel like outsiders," she says.
Not only are American's property values plummeting, but they now feel like outsiders in their own community. That has got to hurt.
John Pasalis is a sales associate at Prudential Properties Plus in Toronto and a founder of Realosophy. Email John
I believe this to be positive for both Canadians and Americans as the Canadians are getting great homes for 1/2 the price they were once paying and it is helping us Americans financially. We have already seen our population's grow more and more diverse and almost "border-less" and on a personal note I would greatly appreciate someone telling me where I can get some baguettes, pâtés or crudités around Southwest Florida??
Also, after reading your post I went to my local Sarasota Association of Realtors website and read up on some real estate statistics; These are a few things I picked up on that show more good news in our near future:
• Inventory levels continued to decline and are now at its lowest point in more than 5 years.
• Pending sales have now exceeded the 500 level for the 19th consecutive month and the 800 level for the fifth straight month.
• The statistic is a strong indicator for the next two or three months of sales, when many of these pendings will become closed sales. Pending sales reflect contracts executed by
buyers and sellers during the month.
From what I have read the Sarasota area is up a great deal compared to other Florida markets. I am excited to see the upcoming few months in a positive respect.
Posted by: Florida Homes Real Estate Magazine | September 03, 2009 at 08:31 PM