The Election Is One More Reason for Canadians to Sell U.S. Homes

Fitful financial markets and signs of a southwest Florida real estate slowdown so unnerved Canadians Fab and Christa Michetti that they sold one of their two vacation homes there last month. The U.S. presidential election’s isolationist talk provided one more push.

“How safe are my assets going to be with the change in the political landscape?” said Fab Michetti, a retired Ford Canada employee who declined to discuss individual presidential candidates. He also pointed to the American dollar’s strength as a consideration. “I would rather have my money in my pocket.”

Canadians who collected Sunbelt bargains during the housing crash have shifted from buying to selling. They’re locking in gains from years of soaring values that are even sweeter because the American dollar, in the past five years, has jumped about a third against their home currency. Meanwhile, the contentious U.S. election, marked by the nativist rhetoric of Republican front-runner Donald Trump, is holding back some purchasers.

In Naples, a wealthy southwest Florida town that’s bolstered by Canadian snowbirds escaping cold winters, sales plunged 19 percent in the first quarter and inventory is piling up. Transactions are also down in once-booming getaway areas such as Palm Springs, California.

Election Looms

The pullback among Canadian buyers comes at a precarious time for pricey U.S. vacation-home markets as soaring property prices, stock-market volatility and the looming election give discretionary buyers pause. Last year, about 920,000 vacation properties changed hands nationwide, down almost 19 percent from a high in 2014, according to the National Association of Realtors.

“We’re seeing economic uncertainty, and, on top of that, we have a presidential election that might lead to restrictions in economic commerce in the future,” said Lawrence Yun, the group’s chief economist. “So Canadians are looking ahead and want to make the decision this year rather than after the election.”



more...

http://www.bloomberg.com/politics/articles/2016-04-26/the-election-is-one-more-reason-for-canadians-to-sell-u-s-homes