A noticeable shift is occurring among Canadian "snowbirds" – those who typically spend winters in warmer US climates. An increasing number are choosing to sell their properties south of the border, driven by a combination of financial pressures and changing cross-border dynamics.

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Financial Factors Weighing on Owners

One significant factor is the financial strain. The Canadian dollar's value relative to the US dollar impacts affordability, making everyday expenses and property upkeep considerably more expensive for Canadians while in the US. When the exchange rate is unfavourable, costs for everything from dining out to paying for services increase substantially.

Compounding this are rising property-related expenses in popular snowbird destinations. In Florida, for instance, homeowners association (HOA) fees have seen sharp increases, reportedly exceeding 15% in some major areas, significantly higher than the US national average. These hikes are often linked to soaring property insurance costs and stricter building safety regulations. For Canadians, especially those on fixed incomes, these escalating costs are making US property ownership less tenable.

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Political Climate and New Regulations

Beyond finances, the evolving relationship between Canada and the US, including trade discussions and political rhetoric, has created a sense of unease for some Canadians. Sentiments of feeling less welcome or concerned about future relations have been reported.

Adding a practical layer of complexity is a new regulatory change. Starting April 11, 2025, Canadians planning stays in the US longer than 30 days will be required to register with US authorities. This introduces a new administrative step for those accustomed to extended, informal winter visits and adds another consideration to the decision-making process.

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Observations from the US Real Estate Market

Real estate professionals in traditional snowbird hotspots like Florida and Arizona are observing this trend directly. Agents report working with a higher-than-usual number of Canadian clients looking to sell their properties. An agent in Florida, noted a significant increase in Canadian sellers, while another agent in Phoenix mentioned handling double the listings compared to the previous year.

This influx of properties from Canadian sellers adds inventory to US markets, particularly in places like Florida, which already faces challenges such as high inventory levels and rising insurance costs. Canadians have historically been a significant segment of foreign buyers in the US (around 11-13% on average), especially concentrated in states like Florida, Arizona, and California, so their withdrawal from the buying side and increased presence on the selling side can influence local market dynamics.

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The Opportunity for Kelowna Real Estate

This trend of Canadians divesting from US properties may present unique opportunities right here in the Kelowna real estate market. For snowbirds or investors reconsidering cross-border ownership, investing locally offers distinct advantages:

• No Currency Risk: Transactions and ongoing expenses are in Canadian dollars, eliminating exchange rate volatility.
• Simpler Taxes: Property ownership avoids the complexities of cross-border tax filing and potential US estate tax implications, which can be substantial.
• Accessibility: Kelowna offers proximity and ease of travel without international border considerations.
• Year-Round Lifestyle: Enjoy the benefits of your property throughout the year, not just seasonally.
• Strong Local Market: Invest in the desirable and historically stable Kelowna market, known for its lifestyle appeal and potential for appreciation.

As Canadians reassess their investment strategies, the stability, beauty, and financial predictability of owning property in Kelowna become increasingly attractive alternatives. If you are considering selling a US property or exploring local investment opportunities, understanding the current market dynamics is crucial.

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For personalized advice on navigating these trends or exploring properties in the Kelowna area, please contact Coldwell Banker Horizon Realty today. Our experienced agents are ready to assist you.

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Source: MSN