According to a new report, Canadians searching for more affordable homes are increasingly looking in the U.S for real estate investment.
The new data was released by the U.S - based National Association of Realtors. Foreign real estate investment in the U.S. jumped 49 per cent on a year-over-year basis for the 12 month period ending March 2017.
Statistics indicate that total foreign investment of residential property in the U.S. reached a new record high of $153 billion US from $51.4 billion US in the previous 12 month period.
Canadians spent a total of $19 billion USD. This number more than doubled from last year. Last year, Canadians spent $8.9 Billion US. China remained as the biggest contributor for foreign investment of residential property.
The National Association of Realtors Chief Economist Lawrence Yun stated that rapidly accelerating real estate markets in major cities across Canada played a role in foreign investment in the U.S.
The Chief Economist of the National Association of Realtors (NAR) also mentioned that even though prices of homes in the U.S. are increasing due to a lack of inventory, prices in five countries including Canada experienced even quicker appreciation.
Data from the Toronto Real Estate Board revealed that the average selling price of homes in the Toronto region jumped 33.2 per cent on a year-over-year basis in March 2017.
Due to a lack of residential listings, the Greater Vancouver region experienced a drop in sales on year-over-year basis in March 2017. Sales dropped by 30.8 per cent in March 2017 from a year earlier.