The number of buyers looking for homes, especially lower-priced homes, has increased rapidly in Arizona in recent months. Many of these buyers are Canadians looking to buy second homes in our sunny Arizona. The reasons are:
1. The Canadian real estate market and the Canadian dollar are still strong. Canada never had a slow down in home prices because lending policies are strictly regulated in Canada. The average home in Canada is worth $350,000, which is more than twice the value of an average home in the Phoenix metropolitan area.
2. Due to this strong Canadian real estate market, Canadian homes have appreciated significantly in value in the past few years. Therefore, many Canadian homeowners are re-financing their mortgage loans at historically low interest rates because of increased equity in their homes, and are using the “cash out” under the re-financing to buy a second home for cash in Arizona.