ILLUSTRATION: LASZLITO KOVACS, Courtesy of The Wall Street Journal
There’s a major change in foreign real estate purchases
According to an article in the Wall Street Journal, there’s a major change in foreign real estate purchases. For the first time in history, Chinese have overtaken Canadians as the biggest foreign purchasers of U.S. property. The article says this is due to a sharply depreciating Canadian dollar, down about 10% over the past year. The falling Canadian dollar (known as a “loonie,”) is shifting the landscape of foreign buyers in the U.S. The National Association of Realtors says the total number of Chinese transactions accounted for 16% of sales to international buyers in the 12 months ending March 2015, while Canadians accounted for 14%, which is down from 23% in 2013.
The biggest drop in Canadian real estate sales is in the lower end market such as condos and smaller homes in cities like Honolulu and Orlando where they are purchasing properties as investments. However, experts say the high end of the market hasn’t been affected as much, especially here in California, one of three states with the most Canadian buyers. Even so, some Canadians are waiting to see if the Canadian dollar will strengthen before they purchase a home in the US. Others are willing to take a hit going into the US market because they know when they sell it will pay off.
Whether you are looking for a new house or an established estate in Montecito, Hope Ranch, Santa Barbara or any of the surrounding communities, I will gladly help you find the perfect home. It doesn’t matter if you are from China, Canada, the US or anywhere in the world, I am here to help foreign real estate buyers as well as Americans. If you are thinking about selling your home, please give me a call at 805.886.9378 or email me at Cristal@montecito-estate.com. Be sure to check out my website to see what’s on the market today.