Posted by on January 29, 2011 10:02 pm
Categories: International

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.

6 responses to Canadians Supplant Californians as Top Arizona Real Estate Purchasers

  1. Robert Worthington February 6th, 2011 at 4:16 am

    Brian, French Canadian buyers are a nice piece of the real estate business in Florida as well. From my experience, many of the canadians have nice sums of equity and/or cash.


  2. Scott Grace February 27th, 2011 at 10:41 pm

    Not all of us have sizable amounts of cash or equity at our disposal. We are right in line with our American counterparts on issues like debt.


  3. TJ May 30th, 2011 at 10:36 pm

    So most of the Canadian buyers are using them for second/vacation homes? This is an interesting trend. Thanks for posting.


  4. Carmen Brodeur June 20th, 2011 at 12:22 am

    It is true. I have had an amazing number of Canadian buyers this year. Why not? Beautiful weather, a strong dollar, fantastic home prices. It is a winning combination.


  5. Charles Richey July 7th, 2011 at 4:30 pm

    We get a lot of Canadians buying in Las Vegas as well. And why not? Cheap prices and no snow, not to mention entertainment, dining, etc.


  6. Yonka August 12th, 2011 at 5:44 am

    Not always all have a very good credit for their dream home, but then also all have to make their dream come true. A home is the only place of satisfaction and relaxation.


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