Many Canadians with property south of the border have either sold or are considering selling, a new report by Royal LePage released Wednesday has found, and the administration of U.S. President Donald Trump appears to be the key factor.
Over half, 54 per cent, of Canadians with properties in the U.S. told a Royal LePage survey they have either sold or are planning to sell their properties down south.
A majority of those planning to sell — 62 per cent — said the main reason they wanted to sell was “due to the current political administration in the United States.”
Of those who had already sold their properties, 44 per cent said it was because of the political climate while 27 per cent said personal reasons factored into their decision.
“The polarizing political climate in the United States is prompting many Canadians to reconsider how and where they spend their time and money,” Royal LePage CEO Phil Soper said.
Extreme weather events, such as hurricanes, flooding and forest fires, factored in for 22 per cent of those who have already sold their properties this year.
The “Buy Canadian” sentiment is making its way into the real estate market, Royal LePage said.
Around one-third, 32 per cent, said they will reinvest the proceeds from the sale of a U.S. property into the Canadian real estate market.
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The vast majority of the homes Canadians own in the U.S., 62 per cent, are vacation homes, while another 18 per cent are investment or rental properties.
However, 16 per cent said their property in the U.S. was their primary residence.
“Canadians have been the most important foreign investors in America’s residential real estate market for years, and a significant wave of property sales would leave a noticeable mark on the regional economies that snowbirds support,” Soper said.
“Places like Florida, Arizona and California stand to lose millions in economic activity — and thousands of neighbours — if Canadian owners pull their capital from U.S. housing markets,” he added.
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