A recent study found Americans are increasingly searching for Canadian properties online, but is that expected to translate into sales?
“There’s no way to tell; but, using historical trends, an uptick in listings views is followed by an increase in consummated transactions,” Phil Soper, president and CEO of Royal LePage, told MortgageBrokerNews.ca. “A lot of people kick tires and look at property even as a form of recreation, but an overall increase in the amount of shopping activity does translate into some increase in confirmed transactions.”
Even with a potential uptick in transactions, Soper believes home prices won't be materially impacted.
Royal LePage released a study Friday that found American interest in real estate has skyrocketed since the U.S. Presidential Election.
According to the company, U.S.-originated search sessions increased 239% the day after the election.
Overall, American web traffic increased 40.9% year-over-year in the fourth quarter of 2016.
“Always a desirable destination for migrants, Canada’s attractiveness as a country for international relocation has surged this decade,” Soper said of the study. “The United States was already a top source for immigration into Canada, and now in the period following the recent U.S. election, we are witnessing a material bump in American interest in Canadian real estate.”
That interest is expected to continue.
Though, as mentioned, the impact it will have on home sales remains to be seen.
“My guess is that many of the thousands of people perusing listings don’t understand the full complexity of buying a property abroad or immigration, but some do,” Soper said.
Unsurprisingly, Ontario led the country as the top-searched province for real estate among Americans, accounting for 41.4% of page views.
British Columbia accounted for 17.4%, while Quebec accounted for 13.9%.
One interesting note from the study, according to Soper, is that while American interest in Canadian real estate has largely focused on recreational properties, ¾ of the properties perused in this study were in urban locations.