Whether Canadians are flocking to purchase homes in Arizona because it’s a buyer’s market, or simply because they are tired of snow, the effect is the same: 1/4 of all out-of-state buyers in the Phoenix area recently are Canadian citizens!
It’s true that you don’t have to “shovel sunshine” – and this alone could be the original source of Canadians who are buying homes in Phoenix. However, as we all know, the real estate market in Arizona is struggling, the United States dollar isn’t as strong as it could be, and the fear of loss of jobs or loss of retirement income is at nearly every American’s doorstep. But Canada’s dollar is stronger, and they are not as affected by the recession.
Canada’s retirees, who may have decided another winter of shoveling several feet of snow is just not possible for their aging bodies, younger people, and even investors are looking to the struggling US real estate market for bargains. The warmer the area the better;we sure have plenty of warmth here in Phoenix!
Is this good or bad for the Phoenix area? Well, it will certainly bring non-US dollars into the area, which is a good thing for our economy. It will mean fewer foreclosures and other empty homes on the market, which will eventually increase and stabilize home prices again. Since many of the Canadian buyers are retired, it’s quite possible that these new residents will have independent sources of income, so will not decrease the pool of available jobs. Many may even increase the job market if they are small business owners or even just need to hire some domestic help -not to mention the increase in services and places to shop that will be needed with an increase in population.
This trend is not new; even before the recession we were seeing more and more Canadians heading to the sunny city of Phoenix. Now we see fewer Californians purchasing in Phoenix, a population that has traditionally been the leader in out-of-state buyers. We are also seeing an increase in buyers from northern United States regions and the Midwest.
Quite possibly, the best thing that these new buyers will bring is more stability. Those who are looking to invest and live in Phoenix these days are a population group that typically stays put for a long time.
If you are ready to trade in your snow-bunny gear for shorts and sandals, give the Curtis Johnson team a call. We know the Phoenix area and can help you find the home of your dreams or a great investment property. Contact the Curtis Johnson team, go to CurtisJohnsonRealty.com or call 1-888-Curtis-J.
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