Are B.C. residents with properties in the U.S. bailing out?

Elbows up, money out?

A recent survey has revealed that more than half of Canadian property owners in the U.S. are considering selling their properties within the next year. The main reason cited for this potential mass sell-off is the political and economic tensions between the two countries during the Trump era.

According to the Royal LePage survey of 2,500 online respondents, 54% of Canadians with U.S. vacation homes or primary residences are planning to divest within the next year, with 62% attributing their decision to the policies of the Trump administration and the strained relationship between the two nations.

Phil Soper, president and CEO of Royal LePage, stated, “The polarizing political climate in the U.S. is prompting many Canadians to reconsider how and where they spend their time and money. Canadians have been the most important foreign investors in America’s residential real estate market for years, and a significant wave of property sales would leave a noticeable mark on the regional economies that snowbirds support.”

However, B.C. realtor Adil Dinani suggests that many property owners are still in the “discovery process” and may not have concrete plans to sell yet. Emotions are running high due to the current political climate, leading individuals to reassess their long-term plans for their U.S. properties.

While there is a sentiment shift among Canadian property owners in the U.S., Dinani believes that the overall landscape may change with a potential trade deal between the two countries. Despite the political factors influencing property sales, the general slump in both the U.S. and Canadian real estate markets, along with other personal and financial reasons, may also play a role in the decision to sell.

In the U.S. enclave of Point Roberts, Washington, real estate agent Lindsay Loreen notes a shift in the market, with reduced Canadian activity impacting home sales. While there hasn’t been a mass sell-off, there is a noticeable change in the demographics of buyers, with more Americans seeking to relocate to Point Roberts.

The survey also indicates a spike in American visits to the Royal LePage website, suggesting that some U.S. residents may be considering a move to Canada. However, with a ban on foreign buyers of Canadian homes still in place, this interest may be driven more by curiosity than actual relocation plans.

Overall, the decision to sell U.S. properties among Canadians is influenced by a mix of political, personal, and financial factors. While some plan to reinvest the proceeds into the Canadian real estate market, others remain uncertain about their future plans. The Royal LePage survey provides valuable insights into the evolving dynamics of cross-border property ownership and the impact of political tensions on real estate decisions.