Canadians Lead US International Home Sales In Slowest Year On Record

US international sales were down 37% last year, but Canadians fleeing high prices made up the bulk of buyers, ahead of China and Mexico. According to the report, Canadians made up the largest number of foreign sales representing 13% of the pool of purchases, beating out China and Mexico, who represented 11% each, followed by India at 11% and Colombia at 4%. Though, China had Canada beat in total dollar value, with Canadian transactions accounting for $5.9B and the Chinese spend clocking in at $7.5B.
Still, the dollar volume of total international sales in the US was down 21% with the overall number of transactions down 37% compared to the previous year. In total, $42B was spent on 54,300 foreign home sales in the past year.
The cause of this decline, of course, was high inflation, high interest rates, and limited inventory in the states, reported RBC. Similar to Canada, the US saw its lowest year for overall sales since 1995. Still, homes south of the border remain cheaper than in Canada, even despite a 14% year-over-year price increase, hence their popularity among priced-out Canadians.
For comparison, RBC pointed out that as of June 2024, average home prices in Toronto are $12,504 per sq. ft, while in the notoriously expensive city of Los Angles, that number is only $4,760 USD, and in San Diego, it costs $7,520 per sq. ft.
Despite the slow year, Alain Forget, Head of US Sales and Business Development at RBC Bank, says the trend is likely to improve in the coming months. “With the expectation of lower interest rate trends for the rest of 2024 and 2025, there is greater potential of U.S. mortgage financing in the year ahead,” he says. “There are also a lot of Canadians who are currently on the sidelines, hoping for a better CAD/USD exchange rate. And if the CAD doesn’t rebound as rates go down, US mortgages may become an even more cost-effective – and attractive – option compared to an all-cash purchase.”
So, as Canadians increasingly set their sights on the US, where are they buying homes? In proverbial Canadian fashion, most are headed to warmer pastures, with 41% purchasing real estate in Florida, 23% in Arizona, 9% in Hawaii, and 6% in California. Smaller numbers are also moving to New York and Texas, with each state gaining 4% of Canadian buyers. Of these purchases, 37% were for homes in resort areas, indicating that many Canadians are buying recreational or retirement properties “close to beaches, golf courses, and other warm-weather lifestyle amenities,” reported RBC.
The decline brings the seasonally adjusted total housing starts from July’s 279,804 units down to 217,405. Developers such as Wesgroup, Polygon, Anthem, Strand, and Edgar are pushing the Metro Vancouver Regional District to reconsider DCC increases. With more rate cuts “all but guaranteed” for the coming months, sales ticked up nominally in August as would-be-homebuyers continued to hold out for lower rates. Epitomizing integrity and prioritizing quality, GTA homebuilder Camcos Living is led by industry veterans who together bring more than 50 years of experience to the table. The reforms, which include greatly expanded eligibility for 30-year mortgage amortizations as well as a price cap increase for insured mortgages, are intended to make homeownership more attainable and affordable for Canadians. Those applying to build a detached or semi-detached home in Edmonton, can have shovels in the ground that same day, thanks to a new automated review system. The iFortune Homes projects that are under foreclosure include Elm41 and Auberry, both of which were planned for Vancouver. The proposed development from Density Group Ltd. would bring nearly 500 new residential units to Bathurst and Finch. From rentals to retail, Upper East Village brings high value to Leaside. Canada has a productivity problem, and according to head economists at TD, the construction sector is the main culprit. The extraordinary “Little Wolf” property, located at 17727 Highway 16 East in Terrace, has been featured in National Geographic and on the Discovery Channel. “The charges include illegal building and selling, failure to enrol homes, failure to comply with conditions, and being a party to an offence.” Alberni is defined by emphatic scoops, carvings, deep balconies, and a strong relationship with the streets — and incredible views — that sprawl out below. A rezoning application was previously submitted for 282 W 49th Avenue in 2018, but the developers have since submitted a new application. A study from simplydbs found that 74% of renters valued price over location, amid a high cost of living. Richard Lyall, president of the Residential Construction Council of Ontario (RESCON), breaks down the cost of doing business when it comes to building new homes in the province, and the math is hard to swallow.
#J-18808-Ljbffr