“I recently sold two Arizona properties that were bought in 2012, the last in November had a 50 per cent gain,” Phil Wazonek, of Distinctive Realty Services, told CREW Monday. “I would say that if Canadians now have use for the money, they can cash out for significant returns.”
But they may not, in fact, want to. Arizona home prices rose another 16 per cent in May relative to the year-ago period and helped restore prices to within range of prerecession levels.
The speed of recovery eclipses the expectations of even the most optimistic economists, convinced it would take a decade or more after the 2007 crisis to recapture lost glory.
The sped-up pace means the thousands of Canadian investors responsible – at least in part – for helping drive up prices with their glut of purchases over the last five years are now presented with two very enviable options.
Many of those foreclosure buyers are choosing to sell up, with demand for single-family homes winning them capital appreciation of 200 per cent or more.
Still, others are sitting pat and enjoying the kind of cash flow that limited rental supply guarantees them, said Wazonek, whose company holds 500 doors in the U.S. and Canada.
That buy-and-hold position makes sense if the Canadian investor has no immediate use for the cash from an Arizona sale, he told CREW.
“A lot of investors are now cash rich and supply poor," he said, "so if you sell where are you going to buy?”
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