US housing market open up opportunity for Canadian real estate investors
Steve Randall
Canadian Real Estate Wealth
The expectation of disruption to the US housing market caused by the coronavirus crisis may open up a window of opportunity for Canadian real estate investors.
That’s according to Cotton & Company, a Florida-based international sales and marketing firm specializing in luxury residential properties, which says that the strong market fundamentals are likely to mean a short-lived opportunity for buyers – due to sellers’ anxiety – followed by a rebound.
“We’ve taken this ride before,” said Stephann Cotton, the firm’s president. “In June 2005, we raised a red flag at the beginning of the last cycle. We witnessed a significant drop in new web visitors and website registrations across the board for dozens of new home communities. Our online analytics were the early indicators of a substantial shift in the marketplace, and it occurred six months prior to national economists recognizing a market shift.”
Good time to buy
With 30-year mortgage rates at a historic low following the Fed’s recent cuts, Cotton believes now is the right time to buy.
“In the short term, homebuyers are distracted by the day-to-day changes that have resulted from our new normal,” said Cotton. “But for the savvy homebuyer, now may be the right moment to get out of the stock market volatility, and back into a more stable real estate market.”
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