Today there’s another article in the Herald about western Canadians buying property in Arizona. What I’ve never seen analysed is the effect it’s had on the Calgary market. A good portion of Calgarian’s property investment dollar is being spent in the U.S. rather than in Calgary. I personally know of many people who have bought in Arizona. Is this an explanation of why we haven’t seen the huge increases in prices in Calgary? If 3000 properties had been purchased in Calgary over the past 2 years rather than in the U.S., it would have put a lot of upward pressure on prices here.
By the way, did anyone correctly call a bottom to the Arizona prices? Those who bought a year ago hit it pretty close, yet I recall many doomers predicting further price decreases.
The following is from today’s Herald:
Diane Olson, a realtor in Arizona, says there is more competition for properties. “We are back to multiple bids,” she said. “Within an hour of a listing there are five to 10 offers. Prices are still below the high times, but the deal you got last year you will not get this year.”
During the buildup of the U.S. housing bubble, house prices in Phoenix were rising by $10,000-to-$20,000 a week according to realtor Diane Olson. Those prices came crashing down in the fall of 2008, but are starting to come back now. For instance:
– 2005 – a typical house price in Phoenix was about $265,000
– 2009 – that same house was selling for $70,000-to-$80,000
– 2012 – today, that house would sell for $130,000-to-$190,000
Read more: Canadians buying sunbelt properties