Western Canadians are buying real estate in Arizona.  There are four reasons for this modern day land grab: 

1. Crude oil and minerals have led the commodities price surge, world wide.  Western Canada is rich with both minerals and crude oil.   While the Western United States is experiencing a housing-led recession,  the opposite is happening to our Northern neighbors. 
2. The Canadian dollar (sometimes called the “loonie”) has reached parity with the American dollar.  What used to cost a Canadian $1.15 , now costs about a buck. 
3. Housing prices in both Arizona and Southern California are over 20% off of their high prices. 
4. Mortgage rates, for Canadian investors, have dropped from 8.5% to 7.2%.

Let me lay it out for you in a story.  Bob Miller, from Calgary, earned some $150,000 Canadian in 2006.  Bob works as a petroleum engineer.  His 2007 income rose some 25% to $190,000 because of the high demand for petroleum engineers in Western Canada. 

Bob’s purchasing power, in 2006, was about $127,000 American.  He could afford to buy a golf course property, in Avondale, AZ, for about $350,000.  To do that, he’d need about $135,000 Canadian for a down payment and have a mortgage payment of about $2,000 Canadian, or 16% of his monthly income. 

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A compendium of articles about how Canadian investors need mortgages from U.S. Banks: 

Black Pearl Marketing Minute: How did Brian Brady get to be Canada’s Favorite American Mortgage Broker?

Why Are Western Canadians Buying Arizona Real Estate?

Canadian Investors Need Mortgages For Arizona Properties

How Canadians Shop For American Mortgages

Canadians Finding That American Mortgage Money Is Scarce

American Mortgages For Canadian Residents: Documentation

Canadian Investors Need American Mortgages

Will Bias Against Canadians Extend to the American Real Estate Market?

Canadians Buy American Real Estate

Canadian Investors, American Real Estate: The Currency Play