Short Sale Buyers Are Out There, Eh.

For all the doom and gloom that’s surrounded the US real estate market over the past few years, there are some bright spots – and the source of that light is from outside our borders. From the Pacific Rim to Western Europe, foreign buyers have wanted to participate in the American real estate market for years but couldn’t afford it. Now, they’re getting their chance. And for many US sellers, they need not look across either pond for a viable buyer, but only towards our northern border.

An article out of the Toronto Star, discusses the influx of Canadian buyers who have always flocked to Sunbelt states like Arizona, Nevada or the snowbird haven of Florida, where rentals or hotels were far more realistic/cost effective options. For the time being, that’s no longer the case.

While the strong Canadian dollar might hurt their export business, it means a limited amount of math is necessary to figure out what that US property might really cost. In the past, a $250,000 US Florida condo might’ve meant almost $365,000 CAN. Not anymore. Now, that $45,000 US Florida short sale will cost you… $45,000 CAN. Big difference.

The article also points out that the stability of Canada’s banking system – more regulated than the US system – means financing is easier to access than the current US mortgage market, especially on investment properties/second homes.

So for those who think selling their home is a lost cause right now, give it a shot. The buyers are out there, if you’re looking in the right place… past our borders.