Canadians and their Loonies flocking to Phoenix
Canadians and their Loonies flocking to Phoenix
The Wall Street Journal recently did a piece on the remarkable numbers of Canadians looking to purchase property in the Phoenix area. Well it seems that everyone is now taking note of what we here in the Phoenix area, and the Canadians have long known; the Phoenix area is a fantastic location for a second home. But, it's not just second homes anymore. Due to the crash of the real estate market in the US, and specifically the Phoenix area, combined with a strong exchange rate between the Loonie (Canadian Dollar) and the US dollar, investors have been very active in the Phoenix area. The general media still speaks of doom and gloom in the overall real estate market, but, as I have said before, real estate is local, not national. What is happeing in other parts of the country isn't necessarily what is happening here. Nationally, Canadians made up 23 percent of all foreign buyers of real estate. I don't have the number for here in the Phoenix area, but I think it is safe to say that it is higher.
So what is the truth about the real estate market in Phoenix. If you talk to 10 different people you'll get 10 different answers. But here are some key points to keep in mind. Our current inventory levels are lower than what is considered a normal, balanced market. We experienced record sales numbers over the summer. Days on market is at or below that of a normal market. Most properties under $300K are getting multiple offers and buyers are complaing about having to put in offer after offer. So does that really sound like a buyers market?
Still, the media hype says that things are awful in Phoenix. Everything is on sale, come and get it. Well, despite what I said in the previous paragraph, properties are on sale. No it's not all doom and gloom right now, but yes Arizona is on sale. Prices are anywhere from 50-70% of what they were at the peak of the market and are on par with pricing in the late 1990's. THe general concensus from most of the real estate analysts is that we are in a period of stability. Nobody expects to see real gains in the short term. But if you look at how much investment is going on right now in the Phoenix area, by people with a long term outlook, how can you not think this is a good time to buy.
I work with Canadians on a regular basis including many real estate agents. They have always considered the Phoenix area a great place for a vacation home to get away from the cold and snow or rain. It's just that dollar parity and low prices have now opened the market up to a wider range of people. Many are looking for simple 2 bed condos or small single family homes, and it goes up to large custom homes. Our prices can't be found in Canada and the travel expenses are small in comparison. Investors are considering all types of properties.
So, what if you are a Canadian considering a purchase here? While there are many differences with regard to the purchase process here versus in Canada, it is actually quite simple. Many of the commonly asked questions are covered in a special section of my web site.
By the way, when I mention Phoenix, I mean the metro area, which spawls widely from end to end and includes Scottsdale, Mesa, Tempe, Glibert,Chandler,Peoria, Glendale and more.
So, are you ready for a sale?
Adam Tarr, PC
Citywide Real Estate
Phoenix, AZ
480-236-7374