“We are one of the few places that are still experiencing strong appreciation still. Values have gone up since the downturn and we’re seeing continued growth because we haven’t seen a deluge of new product coming into the market that would oversupply,” Paul Zeger, partner with Polaris Pacific, told Canadian Real Estate Wealth. “If you want to invest in a place that’s going to have the most rapid appreciation, then Seattle, San Francisco, even San Jose and Oakland. I think you’ll see continued growth in those markets in the next 5-10 years.”
Polaris Pacific is based in San Francisco, but it focuses on the entire west coast of the U.S.; Seattle, Portland, San Francisco, L.A., San Diego, Phoenix, and Scottsdale, Arizona.
Canadians continue to be attracted to the weather, according to Zeger.
That and the promise of parking their money in a safe place.
“It’s a safe haven for the dollar. They get invested here and realize it will work to their benefit,” Zeger said. “If the Canadian dollar rebounds, obviously that would be a negative impact once you’re invested in the U.S. That may be something that is holding a lot of Canadians back.”
Many markets on the west coast rebounded quicker and more aggressively than others following the economic downturn.
And that has helped create attractive opportunities for investors, according to Zeger.
“We’re going to have our cycles, but relative to all the other places you can put investment money, I think we would outpace those. We have in the past 20 years and I think we will continue,” he said. “If you look at it historically over the last 20 years, we’ve seen 3-5% a year appreciation over that time. We’re thinking going forward that will be 4-5% a year over the next few years because of the lack of supply.”
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The West Coast of the United States is still attractive to Canadian investors, according to one developer that specializes in the area. This is why he thinks it will continue to do so.