Even here in Canada the pricing is crazy especially in the big cities. A typical house in the GTA is like over a million and they sell over asking price, it's insane. Not quite as bad in smaller cities like mine though but even here the prices are much higher. I have to say I probably bought at a good time, it was just before things started to go nuts. Paid 165k for my house and could probably get well over 200k now if I sold. My sister bought a house in a newer subdivision, it's not that much bigger than mine but it's newer and nicer, and it was something like 400k.
Part of the issue here in Canada is they keep allowing foreign investors to buy up all the houses so it drives up the prices. They really need to put a stop to that. Not sure if the same thing happens in the states too.
The matter with Canada is that it might be big in land but in terms of major metro areas, the ones with the hockey teams are the only places that would catch an "ignorant foreigner's" eye and everything else might as well be a small town no one knows about. And there are no vacation havens for winter. With the U.S there are many more "hot areas" and education centers to choose from if one is a relatively ignorant investor. And there are some places that will never see a boom, like West Virginia. If there is a boom, it's likely because a particular U.S state of 40 million people and a subset of that 40 million eventually have a truckload of money and tire of paying their native state's taxes and spread out everywhere else that is economically appropriate.
The area I'm familiar with is the Washington D.C area. The population of the city proper is only 700k, but the entire metro area is more than that, with Northern Virginia inside the Beltway commanding the most impressive property prices, and the Amazon HQ is going to make the already high values balloon even more.
The states are so big foreign investors don't know half the cities that exist in the states. Specific states have features that make them easier for an outsider to pull the trigger, be it price, location, or potential for appreciation. By state, the big three are Florida, California, and Texas. I would not be surprised if certain cities then attract the remaining buyers, with NYC being the obvious first in line.
Technically, an out-of-stater is a "foreigner" to particular state in the U.S. Californians might as well be their own species and be domestic foreigners with the values and big money they bring in their reverse migration into Texas, Arizona, Oregon etc...
For a state like Montana, whose property values are surging, I would suspect the boom is caused domestically of course, the Californians; because I doubt it's the Canada-like weather or remote location that is attracting people out-of-state to buy there.
You Canadians had snatched up a few Florida houses in recent history. I suppose the layer of insulating blubber decreases with age.
The Chinese are rich and want to get out of the environmental shithole that is China, so they buy up places in California.
The Haider-Moranis Bulletin: Best way to deal with foreign buyers is … wait for it — build more houses
financialpost.com
Foreign buyers 266,800 U.S. existing homes during April 2017‒March 2018. Florida was the top destination, accounting for 19 percent of foreign buyer purchases.
www.nar.realtor
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