Snowbirds are on a tear for home-buying and it is greatly attributed to a miserable winter, the Canadian dollar skyrocketing and bargain prices that are at an incredible rate. As a result, the Palm Springs Real Estate area has become of the few places in Southern California where you can find sales rising.
The Canadian dollar is now worth $1.05 compared to the U.S. dollar. This is far greater than it was eight years ago when the dollar, known as a loonie, was worth about 62 cents to the U.S. dollar.
There is no denying the fact that most of Southern California has been in a long slump. But thanks to Canadian buyers, real estate professionals say Coachella Valley sales are up 7 percent in the first quarter already.
50 percent of homes at the private, member-owned Springs Country Club are being purchased by Canadians this season according to David Tallman of the Windermere Real Estate office. This compares to the typical sales of about 25 percent in the past.
On top of this, Palm Springs Regional Association of Realtors staff show that 1,329 Canadian buyers and 98 purchasers from other countries has acquired homes or condos just in the last year. And this may be higher as these numbers only account for those who registered with international addresses.
Research shows that 30.5 percent of home sales in Southern California were cash purchases in the last month, which is up from a 10-month average of 13.3 percent. The data also suggests that absentee buyers bought 26 percent of homes.
Rancho Mirage Realtors are greatly feeling the effect of Canadian buyers with about 80 percent of their clients coming from Canadians last year. On top of this, Canadians accounted for 60 percent of their client mix in the first quarter.
While there are promising statistics to back up the Canada-craze theory, others believe Bank Foreclosures in Palm Springs and other market issues are to credit for $400,000 homes now going for $200,000 or less.
Regardless, the housing market in most Canadian provinces has remained strong, thus enabling buyers to set up a line of credit against current real estate assets to finance property purchases in the valley. This is particularly true in western Canada. The Canadian real Estate Association is reporting remarkable prices of $792,000 in Vancouver, $588,000 in British Columbia and $454,000 in Toronto in February.
Canadians are migrating south to find prices they cannot believe. But it is not just Canadians who are shopping for second homes and investment properties. The ruthless winter in the Midwest has spurred some older couples to check out the warm climate that Southern California has to offer. You can't beat the gorgeous temperatures year-round that are offered.
And what you are finding is that the "sun belt" states are accounting for 53 percent of all foreign purchases. This has many local Realtors advertising north of the border. But it is the lifestyle that is attracting many to the Southern California region today.
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