Despite a growing list of things that could prompt Canadians to cash out of their U.S. properties, the beginning of 2017 saw a new record set for real estate purchases by Canadians south of the border. Over 33,000 properties were bought up for a total of nearly $20 billion USD, both of which are record breaking figures.
With extreme weather events on the rise, a strengthening loonie, and an unfavourable political environment in the minds of many, some might think that a widespread sell-off from Canadian property owners is due, but no evidence of that has surfaced just yet.
One reason could be the complex tax process that exists for foreign property owners in the U.S. if they want to sell. Recent changes to the federal tax code coupled with high state taxes in some areas means the burden of selling may not be worth the trouble of getting out of the market. Canadians looking to escape the cold weather are also always going to make up a certain share of the market that will rarely be concerned with selling their winter get-aways.
But this is not to say that Canadians are not involved in selling at all. Of all transactions involving foreign owned U.S. real estate, the largest portion of sales came from Canadian owners.
Whether it’s for sellers or buyers, the market is certainly lively.