According to a BMO Bank of Montreal survey released today, 20% of Canadians would consider buying a home or property south of the border, largely as a result of the decline in value of American real estate and the strong Canadian dollar.
Overall housing prices in the United States have fallen by 30% over the past four years. However, prices in regions that are traditional destinations for Canadian snowbirds have dropped even more. For example prices in Tampa have dropped 44%, Phoenix 54%, Las Vegas 57% and Miami 49%.
BMO statistics indicate that the U.S. housing market has likely bottomed out and should stabilize and strengthen by next year.
“Now, with the American economy and employment gaining strength, home sales should pick up and put a floor under soft prices,” said Sal Guatieri, senior economist, BMO Bank of Montreal. “We expect prices to rise over time as the overhang of unsold homes eases.”
He added that, over the long term, the U.S. dollar should strengthen as well.
This would provide an opportunity for capital appreciation for Canadians purchasing U.S. property at a low price while the Canadian dollar is high.
Regionally, those in Alberta (31%), British Columbia (28%), and the Prairie Provinces (27%) are most interested buying property in the U.S.