Once again the latest numbers show that Canadians bought more U.S. properties than the citizens of any other country in the U.S. last year – almost one-quarter of the real estate purchased by citizens of other countries in the United States.
A few blogs ago I discussed the participation of foreign buyers to our national and local real estate markets, and the importance of those sales to certain states. For example, almost 60% of those international purchasers buy in Florida and Arizona. Florida has traditionally led in the amount of international buyers, with Arizona generally ranking fourth.
As to Canadian purchasers, the Globe and Mail (http://www.theglobeandmail.com) recited the latest statistics available from National Association of Realtors (NAR). The NAR reported that Canadians bought 23 per cent of all the homes sold to foreigners from March 2009, to March 2010. Mexican nationals came in second at 10 per cent. The United Kingdom was second with 9 per cent, with China (8 per cent) and Germany (7 per cent) completing the top five.
The NAR numbers state that foreign purchasers were estimated to constitute 4 per cent of the total amount invested in U.S. real estate during that one year period. That sounds like a small percentage, until you realize that equals 41 billion U.S. dollars! Of that figure, Canadian buyers spent about $9.5 billion on purchases here.
“Although international purchasers from a wide variety of countries are present throughout the United States for a variety of reasons, proximity to the home country and the convenience of air transportation are believed to be important considerations in selecting the buying location,” the NAR report notes. Obviously that explains a large part of the popularity of Canadian and Mexican investment here.
Although our northern neighbors may have greater access to financing compared to other foreign nationals due to the existence of Canadian banks here, the biggest hurdle to investment still is obtaining a loan.
Realtors reported that 34 per cent of all potential purchases by foreigners were not completed due to financing problems (no Canadian specific numbers are available). The only good news here is that the difficulty in borrowing means that Canucks are often cash buyers.
In this difficult market, an Arizona seller should market its property to more than the Phoenix metropolitan area home market. Obviously Canadian buyers in particular are important here. Statistics Canada reports that Canada’s population is estimated to have surpassed the 34 million mark. Don’t miss an opportunity to sell to a friendly Canadian. I know how to reach foreign investors due my heritage and advanced legal and real estate education. For you Canadian buyers, SimplySOLD understands the complexity of cross-border purchases and are your best bet to handle your Arizona real estate transaction.
If you have any questions or would like to know more about how my expertise can benefit you, call me at 480 675-0112 or email to firstname.lastname@example.org.
– N. Mark Kramoltz © 2015