Canadians Are Top Foreign Property Buyers

Canadians are ranked as the top foreign property buyers of U.S. real estate for the past three years, as they take advantage of low prices and buy condos and other properties in cities around the United States.

According to the National Association of Realtors®, Canadians accounted for 24 percent of foreign property buyers from April 2007 to April 2008, up from 11 percent the year before, and those numbers have remained relatively steady. Our northern neighbors made up 23 percent of foreign buyers between April 2009 and April 2010. According to the NAR's  report entitled. "2010 Profile of International Home Buying Activity,” that trend is continuing.

The Canadians are followed by investors from Mexico, the United Kingdom, China, Germany/France, India and Argentina/Brazil, according to the NAR.  International buyers from 53 countries  were reported in 39 states, although more than 53 percent of sales were concentrated in  Florida, California, Arizona and Texas. They bought a total of $66 billion in property (7 percent of the total), according to the NAR report.  Foreign buyers include those with residency outside the U.S. as well as recent immigrants and temporary visa holders.

 This trend is noticeable in places like Maricopa County, Ariz., which includes Phoenix.  Californians were once the biggest group of “outside” homebuyers there, but a recent report has found that Canadians have assumed that spot. According to Irvine, Calif.-based John Burns Real Estate Consulting, Canadians supplanted Californians as the biggest buyers in the county in 2010 NAR officials also note that Canadian buyers tend to make different types of purchases than investors in other countries. Most foreign investors typically seek pricier homes, Canadian buyers focus on reasonable vacation condos and other properties in the $200,000 range.

Of course, the fact that Canadians are the biggest foreign property buyers in Arizona and elsewhere is not simply because prices are low. In the current economic climate, it no longer makes as much sense for California residents to buy property in Arizona, when they can get similar property in their own state. But Canadians still find even luxury condos in Arizona to be a great investment, either as winter getaways or rental properties.