OTTAWA – Canadians are cautious about buying property in the U.S. despite a high Canadian dollar and discounted pricing on real estate south of the border, according to a survey released Tuesday.
A poll conducted for Bank of Montreal had 16 per cent of respondents saying they would consider buying a home in the United States. That was down from 20 per cent in a similar survey done a year earlier.
“Despite signs of bottoming in the U.S. housing market, a still-strong Canadian dollar and attractive valuations, Canadians appear more wary of buying in the U.S. this year than last,” BMO senior economist Sal Guatieri said in a statement.
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Guatieri noted, however, that Canadians account for 23 per cent of foreign buyers of U.S. real estate, which is more than any other nationality.
BMO said housing prices in the U.S. are down 34 per cent in since peaking in 2006. Values have dropped 50 per cent or more in popular spots for Canadian snowbirds, such as Florida and Arizona, it added.
Of those interested in buying U.S. housing, 56 per cent said it would be for the purpose of having a vacation/second home, 44 per cent cited affordability and 29 per cent said it would be a good long-term investment.
The survey was done by Leger Marketing of 1,500 Canadians 18 or older who were part of an online panel. BMO said a random sample of this size would be accurate within 2.5 percentage points, 19 times out of 20.
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