Canadians are cooling on the U.S. housing market

"In August, Redfin data shows that there was a 23% yearly decrease in the number of Canadian homebuyers searching for properties in the Orlando metropolitan area. In total, Canadian home searches have fallen in 46 of the 50 largest U.S. metros, with the largest declines in West Palm Beach, Florida (26.6%), followed by Anaheim, California (-26%), Columbus, Ohio (-26%), Detroit (-25.5%) and Los Angeles (-25.5%)."

"The only metros with annual increases in Canadians searching for properties were Kansas City, Missouri (13.6%), Nashville (8.5%), Jacksonville, Florida (3.3%) and Fort Worth, Texas (1.5%). While U.S. consumers are celebrating mortgage rates coming down into the lower 6% range, Castro said Canadian buyers borrowing funds are still looking at rates of 8% to 8.25%. In addition, these Canadian buyers also must put down 25% as a down payment, far more than what most domestic homebuyers put down for a down payment."

"So, it is costing them more money, Castro said. When you add this on top of Airbnb and VRBO occupancy going down because people are no longer concerned about COVID and are willing to stay at some of the resorts instead of having a house to themselves, they are not getting the same out of the investment that they once were. Castro added that rising homeowners insurance costs and a weaker Canadian Dollar are also hampering affor"

Prior to 2022 approximately five to seven of 50–80 annual transactions involved Canadian buyers and sellers. Demand from Canadian buyers declined after mortgage rates rose in mid-2022. In August, Canadian homebuyer searches in the Orlando metro fell 23% year-over-year. Canadian searches dropped in 46 of the 50 largest U.S. metros, with the steepest declines in West Palm Beach (26.6%), Anaheim (-26%), Columbus (-26%), Detroit (-25.5%) and Los Angeles (-25.5%). Only Kansas City, Nashville, Jacksonville and Fort Worth saw increases. Canadian borrowers face 8–8.25% rates and typically must make 25% down payments. Lower short-term rental occupancy, rising homeowners insurance and a weaker Canadian dollar further reduce investment appeal.

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