Real Estate: Hot Houses for Snowbirds

As the U.S. real estate rebounds, Ian MacNeill says snowbirds can still find a deal

Remember going to all those dinner parties a couple of years ago where all anybody could talk about were the bargains in U.S. real estate?

Four-bedroom homes with pools going for a few hundred thousand, million-plus mansions knocked down like Christmas ornaments in January clearance sales.

Notice how you’re not hearing those conversations anymore? For those with capital to invest, it was fun while it lasted, but the land rush is officially over. Thanks to an economic recovery in the U.S. and the winding-down of the sub-prime mortgage lending fiasco, housing prices in the Sunbelt have been steadily rising, especially for buyers with Canadian dollars, which have declined in value by as much as 10 per cent against the greenback.

“Buyers have to start adjusting their expectations,” says Dr. John Tuccillo, chief economist for Florida Realtors. “You’re not going to get that four-bedroom, four-bathroom home with a pool for $200,000 that you could have gotten a few years ago.”

The loss of affordable properties in Florida has been exacerbated by the fact that a lot of available homes were scooped up by bulk buyers who cashed in on the excess inventory in order to turn them into rental properties, he adds.

But it’s not all bad news. Despite the fact that prices have been climbing, they haven’t returned to the dizzying heights they once occupied; depending on what you are looking for and where, prices are still 10 to 30 per cent below what they were at the peak.

“The party’s never over,” says Tuccillo. “Nowadays, it’s more about knowing where it’s still going on.”

In Florida, bargain-hunters should be setting their sights on communities north of the I-4 corridor, which cuts across the state from Tampa to Daytona Beach. He singles out communities like Cocoa Beach, Titusville, St. Augustine, Panama City and Pensacola. These are less populated areas where prices started lower and have climbed less aggressively since the onset of recovery.

California

For generations, western Canadians have been drawn to California: the culture and cool of San Francisco or the glamour of Los Angeles. For snowbirds, it’s the desert communities of the Coachella Valley. Palm Springs is the cultural heart of the Valley, with its pedestrian-friendly streets, boutique shopping and wealth of alfresco dining options. Going southeast takes you through the golf havens of Rancho Mirage and Palm Desert to the increasingly suburban towns “down valley,” many surrounded by gated communities – preferred locations for many Canadian snowbirds.

Palm Springs

Single Family Home

Peak: July 2006 $531,000

Lowest: July 2011
$326,000

Recent: July 2014
$477,000

Two-Bedroom Condo

Peak: July 2006 $300,000

Lowest: July 2011
$173,000

Recent: July 2014
$231,000

Rancho Mirage

Single Family Home

Peak: July 2006

$824,000

Arizona

From the many communities in the Phoenix area (the Valley of the Sun) to the artistic city of Tucson and the frontier town of Bullhead City, Arizona has a long history of being a second home to Canadians. The climate may attract visitors initially but it’s the stark beauty of the desert that keeps them coming back. Although most gravitate to Phoenix and surrounding areas, there are many communities throughout the state where good value can be had in real estate including Fort Mojave on the Colorado River, Lake Havasu with its boating opportunities and Quartzsite, a haven for the RV set.

Scottsdale

Single Family Home

Peak: July 2006
$658,000

Lowest: July 2011
$410,000

Recent: July 2014
$516,000

Two-Bedroom Condo

Peak: July 2006
$351,000

Lowest: July 2011
$199,000

Recent: July 2014
$237,000

Mesa

Florida

It’s no surprise why more Canadians visit Florida than any other U.S. state. In addition to offering everything a snowbird could desire – sun, sand, golf and culture – it’s easily accessible from major Canadian cities. While housing prices have rebounded significantly since the recession, there are still good deals to be had, especially in the northern part of the state. Many of the communities located there have all the requisite amenities, including a mild climate. But because they aren’t traditional destinations, they feel like real communities that snowbirds can enjoy – almost like natives.

West Palm Beach

Single Family Home

Peak: July 2006
$334,000

Lowest: July 2011
$140,000

Recent: July 2014
$202,000

Two-Bedroom Condo

Peak: July 2006
$215,000

Lowest: July 2011
$74,000

Recent: July 2014
$111,000

Fort Lauderdale

Texas

Texas is RV country, with parks littered throughout the state ranging in size from small to absolutely Texas-size enormous. Many offer a wide range of activities, making them feel more like cities than holiday camps. And Texans love snowbirds so much – they call snowbirds Winter Texans. Winter escapees come for the miles of spectacular white sandy beaches along the Gulf Coast, San Antonio with its beautiful canals, McAllen in the heart of the Rio Grande Valley, the fishing paradise of Port Aransas on the Gulf Coast and, of course, Brownsville with its rich Mexican-American culture.

Corpus Christi

Single Family Home

Peak: July 2006
$211,000

Lowest: July 2011
$159,000

Recent: July 2014
$199,000

Two-Bedroom condo

Oldest Available Data Oct 2008
$149,000

July 2011
$99,900

July 2014
$169,000

San Antonio

Single Family Home