Canadians Doubled Spending on U.S. Real Estate in Last Year
August 9, 2017
The National Association of Realtors reports great news for sellers in South Florida: ‘œMore than one out of three Canadian buyers in the U.S. choose homes in subtropical Florida, with the majority of those snapping up homes around Miami, Fort Lauderdale and West Palm Beach’. Over the past year, Canadians have doubled the amount spent on real estate in the US ‘“ $19 billion to be exact and mainly on vacation homes and residential investment properties. Mansion Global tells us ‘œThey look to their southern neighbor for sunny, high-end vacation spots in places like Florida’. Some may be surprised to learn that ‘œEven with a large contingent of Latin American buyers in Florida, Canadians spent the most of any foreign nationals in the state’”around $3 billion in 2016’. ‘œCanada’s burning hot housing market, particularly in Toronto and Vancouver, has fueled purchases in the U.S., as baby boomers cash out on their long-time family homes in Canada and use the spoils to pick up amenity-rich second homes in the U.S.’.
What are the Canadians buying?
The typical buyers is looking for a low maintenance vacation spot, so it is no surprise most buyers are looking for a luxury condo in the beach area. ‘œA lot of those snowbirds want new developments. It’s their resort property,’ said Ms. Fox, who will soon launch sales in Canada for the new Four Season Private Residences Fort Lauderdale. ‘œThey want a valet, they want a concierge, they like maid service.’ ‘œNew developments in Boca Raton like Akoya Boca West, a condominium at the Boca West Country Club, have seen an influx of new high-end buyers from Canada, a spokeswoman for the development said’. In fact, Akoya already has over 20 Canadian owners which is helping sales with other Canada based households.
How are they buying?
‘œThe vast majority of Canadian buyers in the U.S., some 76%, pay for their homes in all cash, according to John Slivon, president of the realtors association in Palm Beach and Greater Fort Lauderdale’. The typical Canadian buyers have several million in assets and many are looking for luxury homes in the $1 million to $3 million dollar range, making Palm Beach, Fort Lauderdale, and Miami beach area homes very desirable. See Mansion Global article.
Contact Nicholas Malinosky and Randy with Douglas Elliman if you are looking to buy or sell a luxury oceanfront, waterfront or beach area home in South Florida.