Major foreign media reported that Canadians are selling their dwellings in the United States and leaving. Canadians are the largest foreign purchasers of dwellings in the U.S., and this is analyzed as a result of accumulated economic factors along with political factors, such as President Donald Trump's remark about a '51st state.'
The Wall Street Journal (WSJ) reported on the 13th (local time), quoting several real estate experts, that Canadians are selling dwellings in regions like Florida and Arizona, which they have owned for decades, even at a financial loss.
Philippe Trudeau, a businessman from Montreal, Canada, was asked by another customer 'What are you doing here?' when he spoke in French at a large supermarket in Florida. When he explained that he had owned a dwelling there since 2018, he was told to 'go back home.' He told the WSJ that he disposed of his 111㎡ (about 34 pyeong) dwelling for $280,000 (about 400 million won) in just one day, stating, 'I just wanted to leave this place.'
According to the WSJ, Natalie Mancuso, an elementary school teacher in Montreal, also recently sold her vacation dwelling in Pompano Beach, Florida, at a low price. She spent $40,000 (about 57 million won) remodeling the dwelling, and while home prices rose last year, she sold it at a loss of about $10,000 (about 14 million won). She said, 'I incurred a financial loss, but it was a good transaction.'
A Canadian who was planning to purchase a second dwelling in Florida for $1 million (about 1.4 billion won) also withdrew from the home buying plan, saying to the WSJ, 'Why should I spend money here (in the U.S.)?'
Canadians have accounted for the largest proportion of foreign dwelling buyers in the U.S. for decades. According to the National Association of Realtors (NAR), from 2010 to 2013, Canadians made up an average of 23% of foreign buyers, ranking first again in 2023 with 13%. Especially, in Arizona, over 90% of foreign-owned dwellings are owned by Canadians.
However, real estate agents told the WSJ, 'This year, the number of Canadian listings has doubled compared to previous years, and the number of new buyers has sharply decreased,' adding, 'The number of Canadian listings in the first quarter increased sevenfold compared to the same period last year. During the same period, Canadian purchases decreased by 40%.'
The sale of U.S. dwellings by Canadians appears to be the result of a combination of economic and political factors. First, in recent months, the Canadian dollar has shown weakness compared to the U.S. dollar. Earlier this year, the Canadian dollar fell to its lowest level in 22 years, causing Canadians to pay more for real estate-related fees, insurance, and various taxes in the U.S. In this situation, as the prices of vacation dwellings rose, selling a dwelling in U.S. dollars provided both capital gains and exchange gains.
Experts explained that while this economic logic has driven the trend in U.S. dwelling sales for several months, the recent decline in sales over the last month or two has been primarily influenced by political concerns, leading individuals to sell their dwellings despite incurring losses.
President Trump has been continuously announcing policies to strengthen border barriers. The Trump administration has been economically pressuring Canada by imposing a 25% tariff on some Canadian products since March and has tightened travel regulations, requiring foreigners who stay in the U.S. for over 30 days to register with the government. Furthermore, President Trump has consistently advocated for the merger of Canada with the U.S. since taking office, causing resentment among Canadians.
Meanwhile, Canada is also restricting the purchase of dwellings by foreigners, including Americans. Starting in 2023, the country banned the purchase of residential dwellings in areas, excluding those with low population density, and introduced a vacant property tax targeting non-resident foreigners to prevent homes from being left vacant.