Recent reports suggest a potential shift in how British Columbians view their property investments in the United States. While not an outright exodus, factors like political climate and market conditions are prompting some Canadians to reconsider their U.S. holdings, while simultaneously, Americans are showing increased interest in Canadian real estate.
Canadians have historically been the largest group of foreign buyers in the U.S. real estate market. However, a combination of factors, including elevated interest rates and a general market slump, has led to price declines across many regions. This economic climate, coupled with political considerations, is causing some Canadians to re-evaluate their U.S. property ownership.
While not every decision to sell is politically motivated, a significant percentage is attributed to the current political climate. Concerns about border relations and travel experiences are cited as contributing factors, potentially altering the long-standing, friendly travel relationship between the two countries. Some experts believe a trade deal could help stabilize the situation, but the overall landscape may have permanently changed for some.
The U.S. enclave of Point Roberts, Washington, which is currently 54-percent Canadian-owned, offers a specific case study. Real estate specialists in the area note a slowdown in the market, with homes remaining on the market for longer periods. This is attributed to reduced Canadian activity. Interestingly, the clientele has shifted, with Americans now making up the majority of buyers, often seeking to live close to the Canadian border while remaining on U.S. soil. This trend is expected to continue, particularly under the current U.S. administration.
Conversely, there are indications of growing American interest in Canadian real estate. Royal LePage has reported a significant spike in visits to its Canadian website from the U.S. since the beginning of 2024. This surge, particularly noticeable during periods of immigration enforcement in U.S. cities, suggests a potential reverse migration trend. However, experts caution that this might largely be driven by curiosity, especially given Canada's ban on foreign buyers of residential homes.