In Arizona’s Maricopa County, where Californian’s were once the biggest source of outside homebuyers, a recent report has found that Canadians have now taken their place.
According to figures tracked by John Burns Real Estate Consulting, which is based out of Irvine, California, Canadians supplanted Californians as the biggest buyers in the county from December 2009 through to June of this year. Arizona isn’t the only place seeing a large number of Canadian buyers, however, as Jed Smith, who is the managing director of quantitative research for the NAR, has also reported that Canadians have significantly increased their presence in the United States real estate market. Consider these findings:
- Canadians accounted for 11% of foreign homebuyers in 2007
- From April 2007 to April 2008, Canadians accounted for 24% of foreign buyers
- From April 2008 to April 2009, Canadians accounted for 17% of foreign buyers
- From April 2009 to April 2010, Canadians accounted for 23% of foreign buyers
As a result, the NAR is reporting that Canadians have been the top foreign buyers over the last three years, followed by Mexican, UK, Chinese, German/French, Indian and Argentinean/Brazilian investors.
In addition to leading the pack in terms of foreign buyers, Canadian buyers also tend to make different types of purchases than those bought by investors in other countries. While foreign investors typically invest in upper end homes, Canadian buyers tend to purchase more in the $200,000 range. Since prices have dropped significantly in western states, many Canadian buyers are finding these homes to be more within their price range. With most Canadian buyers coming from big cities where homes are quite costly, being able to purchase a vacation home in an area where homes can be purchased for $100,000 to $200,000 is a deal that is difficult to resist.
Of course, the fact that Canadians are outpacing Californians when it comes to purchasing property in Arizona is not all due to the fact that prices are low. Another contributing factor is the fact that California has also been hard hit by the recession. As a result, fewer Californians are in the position to sell their homes in order to move to another state.