Press "Enter" to skip to content

Canadians buy a whole lot of property in the U.S.

The Canadian saga with foreign homebuyers continues.

On Tuesday, the NDP-led government in British Columbia unveiled a budget that included even stricter regulations targeting foreign homebuyers, who will soon be subjected to a 20 per cent transfer tax and additional surcharges for maintaining unoccupied properties.

But while Canadians tighten the squeeze on foreign homebuyers at home, we continue to be among the largest purchasers of real estate south of the border.

A report by the National Association of Realtors (NAR) revealed that in 2016-2017, Canadians were the second most active group buying residential real estate in the U.S. Buyers from China topped the list.

From April 2016 to March 2017, foreign buyers in the U.S. acquired 284,455 residential properties representing 10 per cent of all sales by dollar amount or 5 per cent of all existing dwelling sales.

In addition to China and Canada, other dominant buyers of American residential real estate included buyers from the U.K., Mexico and India.

The trends in foreign homebuying in the U.S. and Canada are eerily similar. Just like Canada, the average price of homes purchased by foreign buyers ($536,852) was 93 per cent higher than the average price of all existing home sales.

Similarly, foreign buyers were more likely to make cash purchases rather than securing mortgage financing. Almost 44 per cent of the foreign home purchases were cash transactions compared to 25 per cent of all existing sales.

Some interesting differences between Canadian and American markets emerge when one distinguishes between homes purchased by non-resident foreigners — who are essentially non-U.S. citizens living abroad —and resident foreigners, who are recent immigrants (not citizens) with fewer than two years of stay in the U.S. or are temporary visa holders.

Most of the buyers from China, India and Mexico are resident foreigners reflecting their status as recent immigrants, students, or temporary workers. In comparison, the bulk of the buyers from Canada and the U.K. are non-resident foreigners who mostly purchased vacation homes.

Canadian purchase of U.S. residences has steadily declined from 69,000 units in 2010 to a little less than 34,000 in 2017. In contrast, the same period witnessed a dramatic increase in the number of dwellings purchased by Chinese buyers rising from 27,000 units in 2010 to 40,500 units in 2017.

The heightened Canadian interest in 2010 was perhaps a result of the collapse in housing markets in the U.S. that made residences in Florida and Arizona significantly cheaper for Canadian buyers.

Since 2015, one can spot a considerable decline in the share of purchases by non-resident foreigners from Canada, China and the U.K. Increasing employment opportunities in the U.S., higher home prices in Canada, and Brexit in the U.K. are likely to have caused a decline in the share of non-resident foreigners.

The U.S. sunbelt has been the preferred location for most homebuyers. In fact, 54 per cent of the purchases by foreign homebuyers in 2016-2017 were concentrated in just five states. Florida, with 22 per cent of the sales, topped the list. Texas and California each accounted for 12 per cent of the sales followed by New Jersey and Arizona, each accounting for 4 per cent of the sales.

The average price of American homes purchased by the Chinese has always been much higher than the ones purchased by Canadians. The difference is a result of locational preferences and the intended use of the dwellings.

Whereas Chinese buyers, predominantly resident foreigners, were concentrated in the more expensive housing markets in California, the Canadian snowbirds landed in the more affordable housing markets in Florida and Arizona representing 37 per cent and 17 per cent of all Canadian purchases respectively.

Even though foreign homebuyer purchases account for approximately 5 per cent of the residential units sold in both Canada and the U.S., the opposition to foreign homebuyers is much stronger in Canada. The reason behind it is not likely the concentration of foreign homebuyers, but the difference in the pace at which home prices have recently escalated in the two countries.

The IMF Global Housing Watch revealed that the real home prices in 2017 increased by 11.3 per cent in Canada compared to 4.3 per cent in the U.S.. The house price escalation was even more dramatic in Toronto and Vancouver.

Whereas additional taxes on foreign homebuyers in Canada will temporarily stop housing prices from escalating, an adequate response to a sustained global interest in Canadian real estate is a systematic increase in housing supply.

Murtaza Haider is an associate professor at Ryerson University. Stephen Moranis is a real estate industry veteran. They can be reached at info@hmbulletin.com.

Site designed by Shafquat Arefeen
The motion also counters the NFLPA's assertion that the NFL's ruling is damaging to Elliott.Watson Tosses 3 TDs as Texans Beat Browns 33 17"We are extremely disappointed with Mr. 1. 1, the Monday before Super Bowl Sunday, revealing a switch form the 2015 ad's prehistoric setting to the future. But thankfully, it is also a land where the right to call out wrong is sacred. They look like grim reaper feet. And grassroots activists, public defenders, and juvenile experts are pressuring elected officials to simply stop charging kids as adults so that they can stay in juvenile programming, where they belong. In a league of men who crush bones and brains for a living, their offenses range from drunken misdemeanors to serious felonies such as the murder charge against New England's Aaron Hernandez this season and the murder/suicide by Kansas City's Jovan Belcher in 2012. In past 3 vs. In all this talking of political winners and losers, what gets forgotten is what moved a handful of NFL players to take a knee to begin with. For the Dallas Cowboy faithful, NFL Hall of Famer, Troy Aikman only ranks 41st All Time, with an 81.6 QB rating. Licensees typically need to submit an application and pay a fee. While the specialists say their services have cleaned up an industry rife with fraud, critics say their "expert authentication" is little more than pseudoscience used to generate millions cheap oakleys in profits at collectors' expense.. And he kept calling play action passes even though the 49ers were losing, the offense was averaging just 3.4 yards per carry and the Panthers were blitzing because they expected the Niners to pass. It was the first time Michigan had ever played Penn State, Mullendore said as he looked at the autographed magazine page framed on his wall. Admirers even dressed their children in youth uniforms of their beloved team.. Here's what you don't want to hear with Hurricane Irma bearing cheap china jerseys down, in some form, on South Florida: Anyone thinking the Dolphins game is at the forefront of public concern. I got your back. Richard Ellenbogen, co chair of the NFL's Head Neck and Spine Medical Committee, said the league is working to shift that culture. And maybe he does at least to some extent. This communication contains "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. So he's a good friend of mine and I want him to do what he wants to do," Trump said. The Seminoles would like to start the season over. But aside from the statistics, colleges and NFL scouts look for prospects with great work ethic and pandora charms good character.. It also requires skills that are as much about running a business as it is handling a sports team.Start at the cheap jerseys BottomThe first step toward becoming a general manager is getting a job in baseball. There are a lot of people I owe for where I'm at right now.". But the spots scored well almost every year in ad ranking services.. ESPN first reported the trade Tuesday morning.. Talk about that.. I been trying to think of ways to keep myself entertained without football since mofo's wanna have a NFL lockout. "There certainly going to be communities out there where a helmet, no matter what price point we come in at, is going to be maybe too expensive," he said. Family is much more likely to donate if they concerned about their loved one if they exhibiting symptoms or signs that are concerning them, or if they died accidentally or especially if they committed suicide, she said. Since NFL teams are in the business of trying to please their customers, not alienate them, they are understandably reluctant to sign a player who will be the subject of controversial news coverage every day. In an interview on CNN Miller said, I had any respect for her, it probably would have been hurtful. But that optimistic cheap jerseys view for pandora bracelet Kaepernick, the former Super pandora bracelet Bowl starter for the San Francisco 49ers who sparked a movement by players by refusing to stand for the anthem last season to protest the treatment of African Americans in the United States, is far from universal.