Canadians Top Foreign Buyer of Properties in The United States

According to a report from Financial, Canada continues to be the top foreign buyer of property in the United States. The latest survey also shows that foreigners purchased US$82.5-billion in residential real estate in the 12 months before March 12, 2012. This figure is a significant portion of the US$928.2-billion in total activity for the period. The top four destinations for foreigners are the warm-weather states, which include Florida, California, Arizona and Texas.

According to Beata Caranci, deputy chief economist at Toronto-Dominion Bank says that home prices won’t likely to go lower in the U.S. The deputy chief economist said in a statement, “If you were trying to get in at the very bottom, you missed it.” She added, “You are still pretty darn close to skimming the bottom, and the more you wait, you can expect about 5% price growth every year.” In Florida, for example, average prices remain about 50% off their peak.

Ms. Caranci says that even if some of the states in the U.S. are experiencing recovery, it will take until 2017 for Americans to recover all the real estate wealth they lost during the recession. Ms. Caranci pointed, “That’s 11 years. It’s very much like Canada. Remember we had our real estate bust in the 1980s and it took until 1995 until prices climbed again. It was a long and extended boom-bust cycle,” she says. “You are talking about a 10-year cycle.”

Even though prices are still high, many people continue to invest their money in properties particularly in those states given above because these areas provide wonderful sceneries and outdoor activities that many countries cannot afford to offer. For example, people are still investing in foreclosures in Southwest Florida  because their prices appear to be lower than brand new houses. These areas are very popular to investors because of its Mediterranean climate and awesome outdoors sites.
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