Snowbirds Unload U.S. Properties and Bring Home Impressive Profits

January 31st, 2016  |  Canadian Business

The Canadian dollar is tumbling and U.S. home prices are soaring. But savvy snowbirds aren’t sitting idle as today’s economy unfolds around them. They’re taking action -- and making a tidy profit as a result.

Taking advantage of the current exchange rate, snowbirds are selling off their U.S. vacation homes and raking in the cash. Back in 2010 and 2011 when the loonie was at basically at par, Canadian buyers swooped into the southern states and picked up properties at a bargain -- real estate prices in the U.S were incredibly low. So for a while, snowbirds had a good thing going.

But Canadians have realized that U.S. homeownership doesn’t make as much financial sense as selling does, at least at the moment. Property taxes and electricity bills have gone up, while the U.S. housing market has taken off.

So they’re selling. CBC News says one couple sold their U.S. property for 65% more than they paid. According to one Arizona real estate agent, Canadian sellers are adding some extra heat to the market as they rush to sell.

Canadian economists say that even after taxes, these snowbirds are coming out ahead in the U.S. real estate market. Looks like it’s a perfect time for Canadians to unload their vacation homes.

Image Courtesy of Adobe Stock