For every Canadian that is buying a home in metro Phoenix, 9 are selling, according to STAT.
The bottom of the Phoenix real estate market in 2010, 2011 and 2012 coincided with a great exchange rate for Canadians. Vacation homes in Phoenix were huge bargains for our Canadian friends.
Now, both factors make selling their Arizona vacation homes hugely profitable for our Canadian friends.
Phoenix home prices are way up from the bottom and the value of the Canadian dollar is way down, and that’s actually a good thing when you sell your Arizona home and get paid in U.S. dollars. Canadians take those U.S. dollars and exchange them for a lot more Canadian dollars than they would have gotten earlier.
“Canadian sellers who purchased at the bottom are cleaning up and out.”
– Tom Ruff, ARMLS
Our Alberta friends have been having some economic stress because of the oil crash, so it’s nice they can make good money on their Arizona homes, if they need to.
Institutional Investor Homeowners
A while after bargain hunting Canadians hit the Phoenix vacation home market, several bargain hunting large institutional investors hit the Phoenix rental home market.
In my national blog, I wrote a short post, “Did Blackstone just accidentally call a market top?,” about the change to Blackstone’s buy and hold strategy.
- Are they beginning to unwind their position by starting to sell some of their rental homes?
- What does the smart money see?