Canadians are top out-of-state buyers

by Lavine Team on June 18, 2010

Canadian flagWell it’s official….Canadians in the month of April purchased more Greater Phoenix Area Real Estate than any other out-of-state-buyers with 405 home sales recorded at the County. Californians, who typically hold the #1 position purchased 368 homes with upper mid-west states coming in third and improving in numbers steadily.

The history of the area is filled with many Canadian pioneers who homesteaded dating back to the 1880s and 1890s such as the origins of Dobson Ranch in Mesa reaching back to the early history of the east valley when it began as a cattle ranch and farming operation.  Wilson Wesley Dobson emigrated from Canada to Arizona and began his cattle ranching and farming in 1886. The city of Chandler was founded by Canadian born and raised Dr A.J. Chandler who bought 80 acres south of Mesa in 1891 and expanded to 18000 acres by the turn of the century before subdividing into 160 acre parcels.

In modern times Arizona has for generations been a popular place for Canadians to escape harsh weather and enjoy year round activities such as golfing and professional sports. The allure of the desert and mild winters has resulted in Canadians flocking to this area for winter vacation retreats and as a retirement mecca. The increased activity in the last couple of years is due to three major factors the first one being the obvious…….1) plummeting property values. A price for the average home here is less than half of what it would cost in Edmonton or Calgary, Alberta where I’m from. In more suburban neighborhoods such as out in the West Valley communities of Avondale and Goodyear, the average price is 1/4 of the equivalent home in any Metro Alberta community.2) The value of the Canadian dollar has been either at par, slightly over par for a short period of time or within 10 cents of par for most of the last three years. This makes a purchase more attractive and within reach to many that have been considering a purchase of Phoenix Area Real Estate.3) The huge increase in real property equity realized by many homeowners  in Canadian towns and cities has made it possible for equity take-outs to buy a house for cash or to pool resources with friends and family to make a purchase.

An interesting trend in buyer demographic has been happening of late. For many years purchasers from Canada have typically been of the age group just about to retire…people in their 50s and 60s. Visitors that have come here and fallen in love wuth the desert that are in their 30s and 40s have dreamed about one day being able to purchase down here. Due to the huge equity gains in Canadian Real Estate that were minimally affected by a small correction after the major gains from 2005-2007, Canadians that are in their 30s and 40s are able to cash in on equity to purchase a home to use for family and friends to enjoy throughout the year with one day being able to be snowbirds down here for the winter. Some of my family members have done this….both my sister-in-laws from Northern Alberta have homes here that they frequent. My cousin from Grande Prairie has bought a beautiful home here. My sister in Toronto is purchasing close to here in July. Some of our past clients in Calgary have either bought here or are working on it. Many clients that I have been working with are much younger than the average home buyer in past years. I have even sold a home to a fellow in his early 20s that worked his butt off in the directional drilling business in order to buy a great house here. Real Estate is not out of reach for all age groups as long as the 3 factors that I have mentioned remain in place and it doesn’t appear that this is going to change dramatically in the immediate future……………….so what are you waiting for??

We have a great mortgage broker in Canada that can arrange a re-finance or homeowners equity line of credit to make it possible for Arizona Real Estate ownership….give us a call to get started!!

We’d love to hear from you to help put your Arizona dream together !!

To view homes for sale, please call Laurie Lavine at 888-494-8558

Start searching for homes now

Leave a Comment

{ 2 trackbacks }

Previous post:

Next post: