Cromford Daily Observation - Among the 22,744 active listings (including UCB and CCBS) in Maricopa County, there are currently 659 that have a Canadian address for their tax bill. This represents almost 3% of homes for sale, even though Canadian owned homes represent only 1.5% of the total single family and condo homes that exist in the county. We can conclude that Canadians are twice as likely to be listing their home for sale as non-Canadians.
This time last year there were only 267 Canadian owned properties listed for sale out of 23,167. This represented 1.2% of homes for sale. So last year Canadians were less likely to be selling their homes in Maricopa County than non-Canadians.
To see one of the reasons why the situation has changed so dramatically see the chart below:
_________________________ Cromford Data can only be redistributed with a subscription__________________ __________
When the US Dollar = 1.37 Canadian Dollars it's a factor that relates to all Canadian owners of U.S. properties. Also worth pointing out that the Euro is .90 to the dollar.
But notice how dramatic the trend line and resulting spread is between the US Dollar and Canadian Dollar in the chart above! Interesting.
From the chart above you can readily see the appeal for selling, where based on the Av $/Sq Ft in the Phoenix Metro a Canadian seller is getting about 30% more in Canadian Dollars.
This also reinforces the importance of Deems message yesterday about the new FRPTA changes that just went into effect (see attached) - a new 15% holdback on properties over $1M (rather than the prior 10% for foreign owned 'residences') and the additional information that apparently the 15% holdback is on 'all' foreign owned properties held for investment (not a residence).
Probably good advise to have Canadian sellers speak with an attorney / CPA with expertise in this arena for any potential consequences or workaround.

No comments:
Post a Comment