Canadians Lead United States International Home Sales
A recent report from the National Association of Realtors found that Canadians lead international home sales in the United States between April 2023 to March 2024. Canadians accounted for 13% of all home sales in the United States during this period, outpacing all other foreign buyers including those from China and Mexico. As housing affordability in Canada continues to be a massive issue, many Canadians are shopping for homes south of the border where prices are much more attractive. Most of these Canadian buyers are looking for warmer weather. 41% of these buyers are purchasing in Florida, 23% in Arizona, 9% in Hawaii, and 6% in California. New York and Texas are also gaining popularity, with each state getting a 4% share of the Canadian buyers. Lower home prices and an overall lower cost of living are the main driving factors for Canadians buying real estate in the US. Most buyers are looking to retire in a warmer and cheaper environment. Many are also buying recreational properties, however, many more couples, families, and professionals are purchasing real estate in the States. 37% of the homes purchased by Canadians in the US were in resort areas, close to beaches, golf courses, and lifestyle amenities. Despite international buyer sales decreasing in the United States recently, Canadians are helping keep the numbers up. Canadians spent $5.9B USD in US real estate from April 2023 to March 2024. Chinese buyers in the United States tend to buy fewer properties, but at higher price points, while Canadians tend to stick to more modest properties. Similarly to Canada, a slow economy, high interest rates, and limited inventory has resulted in the lowest year for overall sales since 1995 in the United States. However, unlike Canada, real estate prices have risen in many US markets this past year. Stll, homes south of the border remain cheaper than in Canada. For first time buyers looking for a less expensive entry into the market, investors looking for cash flow positive properties, retired individuals looking for a warm place to settle, or families looking for an affordable vacation home, the United States offers many attractive options from coast to coast. As an Engel & Völkers Advisor part of a global network, I can connect you with the best properties and individuals to help with your US real estate goals! If Canadian real estate doesn't seem to be the answer, reach out to me to explore your options.
Renovating Vs. Moving - What Is The Best Option For You?
If you are a homeowner looking to change up your current living situation, you may be debating whether you should renovate your current home or move to a new home. There are a few key factors that homeowners should consider before making a decision. 1. Cost. Arguably the most important aspect when considering a renovation or a move is cost. Everyone's situation is unique, but finding the cheaper option often depends on your current mortgage situation, your savings, the extent of the renovation, and the price difference between your current home and a new home. Renovations often come with large up-front costs, while moving may come with more costs down the road. Unexpected costs often arise when renovating. However, between real estate commissions, land transfer tax, legal fees, and movers, the costs associated with moving does add up. 2. What do you want? Determine what you want to change about your current home and assess if your current home will best suit your lifestyle for years to come. Will a renovation fix all of the concerns you have about your current home? Homeowners should also consider the location of their home - are you happy with your current location? As for moving, see if there are any turnkey homes available that suit your wants and needs, that also fit within your budget. Oftentimes, it is difficult to come by a perfect home that requires little to no changes. 3. Advantages and disadvantages. Some advantages of renovating include: Customizing your space exactly as you like it, avoiding the stress of selling your home and moving, and being able to stay in your familiar neighborhood. Disadvantages include: living through weeks or months of construction, finding alternate living accommodations, surprise expenses, and the stress of coordinating with contractors and tradespeople. As for moving, the advantages include: the possibility of purchasing a 100% turnkey home, can purchase in a more ideal location, and not having to deal with contractors or subpar living conditions. The disadvantages are: you may not find a home that is exactly what you want, enduring the stressful and time-consuming moving process, and possibly leaving an area you love. 4. The real estate market. With the advice of an expert Realtor, you can determine if the conditions of your local real estate market will help you get the most out of your move. Depending on how long ago you purchased your home and what the value appreciation trends are like in your area, moving may be financially advantageous. To help guide you to the right decision, reach out to me for a professional opinion. I can help you decide if moving is the right option based on your individual situation, and if not, I can recommend the best renovations that will increase your home's value over time.
Real Estate Market Update - June 2024
Home sales in June 2024 have decreased on a month-over-month basis, and also on a year-over-year basis. As we exit the spring market and into the summer, home sales and overall market activity is expected to decrease. However, some were not anticipating this year's slower than usual June market, especially considering the Bank of Canada's June 5th rate cut. June's interest rate cut has provided some small relief to homeowners and homebuyers. Regardless, June's sales activity suggests that most homebuyers will require multiple rate cuts before deciding to move off the sidelines. So far, the slightly lower interest rate has had no positive effect on market conditions, as prices remain stable or have even dipped in some areas, and sales are down across all GTA markets. Polling for the Toronto Regional Real Estate Board indicates that cumulative rate cuts of 100 basis points (1%) are needed to boost home sales by any significant amount. The GTA real estate market continues to be well supplied, causing a slight dip of 1.6% in the average selling price compared to the same time last year. Sales are down 16.4% compared to June 2023, and new listings are up 12.3%. Recently, many homebuyers have benefited from greater choice and negotiating power. Looking forward, while sales are expected to start picking up as borrowing costs lower, our high inventory levels will help mitigate against quick jumps in selling prices. Overall, as Ontario's population continues to grow rapidly, strong housing demand will persist in the long run. Reach out to me if you would like to find out how these market changes affect your real estate plans! To see how prices have been affected in your area, please click the link below to get access to TRREB's June Market Statistics for all areas in the GTA. The stats are broken down by average sales price, number of homes sold, number of new listings, and average days on market for each property type; detached, semi-detached, townhouses, and condos. https://trreb.ca/wp-content/files/market-stats/market-watch/mw2406.pdf If you want to know more about what is happening in your specific area, you can book a call with me by clicking the link below. https://calendly.com/davidrizzuto/consultation-call?month=2024-07
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