Canadians snapping up ‘sun and sand’ bargains

U.S. housing prices are starting to creep up from the rock-bottom levels of recent years, prompting foreign buyers to invest now before the bargains disappear.

Canadians – accounting for nearly a quarter of home sales to foreign buyers in the 12 months ended in March, according to the National Association of Realtors- will likely continue to lead outside investment in the coming months, thanks to the strength of the Canadian dollar. The gap between Canadian and U.S. home prices has stretched the widest this year than it has been in a decade, providing even more incentive.

House-hunters from Canada heavily favor Florida and Arizona, notes NAR economist Jed Smith.

“They buy for vacation purposes and like to have a place in the sun.”

While Canadians are the dominant foreign buyers of U.S. homes, buyers from China, Mexico, India, and the United Kingdom together represent 55 percent of international buyers. The Chinese have an affinity for West Coast real estate, while Indians prefer the East Coast and Mexican buyers tend to cluster in Texas.