A Look at the U.S. Housing Market in 2023
Royal Bank recently took a more indepth look at the international driving forces behind the U.S. housing market and it made for a pretty interesting read. Here is what you need to know:
Canadian Interest in U.S. Real Estate: Canadians are increasingly interested in U.S. real estate, with a significant year-over-year increase in monthly arrivals, totaling over 1 million, since the lifting of COVID restrictions.
Real Estate Spending and Trends: Despite a slowdown in the U.S. housing market, Canadians spent $6.6 billion USD on U.S. residential housing in the 12-month period of April 2022-March 2023. The average purchase price rose by 60% to $779,000, the highest in 15 years. Florida remained a top destination, with 55% of Canadian home purchases made there.
Financial Adaptations: Canadians are adapting to economic conditions, with 51% choosing financing over all-cash transactions due to the weakened Canadian dollar. U.S. mortgages offer flexibility, and 69% of Canadians who purchased U.S. property in the previous year did so with cash.
Changing Demographics and Rental Trends: There's a demographic shift among Canadian buyers, with more Gen X and millennial buyers entering the market. Younger Canadians are more likely to spend a short time in their U.S. homes, renting them out to offset mortgage payments, a departure from traditional snowbird buyers.
