Event Coverage
Exploring Canada's Real Estate Market
Tricia Lehane, Sharon von Schoenberg and SILVAR Board Director and GBC Chair Jimmy Kang on Zoom
On the Global Business Council's program "Let's Explore Canada's Real Estate Market," Sharon von Schoenberg, associate director for Global & Commercial Programs at the Canadian Real Estate Association (CREA), and Tricia Lehane, a former Canadian resident who is now an Arizona REALTOR®, shared many facts on why the country has become a leading player in global real estate.
Von Schoenberg said CREA is the National Association of REALTORS® counterpart in Canada, with 160,000 members and 59 real estate boards and associations, and would be a good resource of information for SILVAR members. Members can also learn more about becoming a Global Affiliate of CREA, noting "Cross-border referrals make great business sense." In fact, 47% of Canadian REALTORS® referred their outbound client to a foreign REALTOR®.
Von Schoenberg said the average sales price of residential property purchased by international buyers is US $891,054, which is 31% higher than the average price of Canadian homes sold through their MLS. She shared a video on the country's most recent housing market report HERE. SILVAR members will be able to download CREA's latest international report next week at www.crea.ca/global.
Canada's Foreign Buyer Ban (officially the Prohibition on the Purchase of Residential Property by Non-Canadians Act) which went into effect on January 1, 2023, has been extended to 2027. Von Schoenberg explained the ban was enacted to make sure there are no houses sitting empty. However, there are exemptions to property that can be purchased. See more information on the foreign buyer ban HERE.
Von Schoenberg added, this rule, along with other rules regarding financing and mortgages, are reasons why it is very important to work with a Canadian REALTOR® who can give buyers the correct information.
See Von Schoenberg's slide presentation HERE.
Having lived in Canada for over 25 years, Lehane has traveled all over the country and as a REALTOR® now living in Arizona, she has helped many buyers purchase property there.
Lehane said according to NAR's "2024 Profile of International Transactions," Canada returned as the top country of origin among foreign buyers during April 2023-March 2024, accounting for 13% of the number of homes purchased by foreign buyers, up from 10% in the prior period and accounting for $5.9 billion in sales. Next to Chinese buyers, Canadian buyers had the second-highest average purchase price at $834,000.
Other facts she shared include:
* Canada has no title insurance or home warranty.
* Instead of 30-year fixed rate mortgages, they now have 25-year mortgages, but you need to refinance every 5 years.
* Buyer Broker representation agreements are common in Canada.
* Locals are required to give a 5% down payment, while international buyers are required to give a down payment of 35%.
* Closings are conducted by lawyers.
View this fun fact video about Canada which Lehane shared.
View Lehane's slide presentation HERE.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
For further information, please email or call the SILVAR office at (408) 200-0100.