The collapse in housing prices and a strong Canadian dollar are luring north-of-the-border buyers to Arizona and other states where the weather is warm and the housing cheap.
Canadians surpassed Californians in 2010 as top out-of-state buyers of Phoenix-area real estate. The Canadian dollar gained, up from an average of 80 cents on the U.S. dollar in 2005. At the same time, home prices in the Phoenix area have dropped 50-60 percent from their peak in early 2007.
Some U.S. lenders who will work with Canadians, but most of those buyers still pay cash. About half buy for investment, capitalizing on soaring demand for rental housing in Arizona because many families are lost their homes to foreclosures. Other Canadian buyers want vacation homes.
Many Canadian buyers like Arizona because they don't worry about earthquakes, tornado's, hurricanes and harsh winter weather. Florida has hurricanes, which have jacked up homeowners' insurance rates. In California, where earthquakes are a threat, areas that offer the greatest housing bargains are not vacation spots.
Currently homes priced under $150,000 are selling quickly in the Phoenix market. Things are tightening up which is good news for homeowners. It is a great time to buy homes with low interest rates.
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