Spokane welcomes Canadians
The Spokane economy has always welcomed our Canadian neighbors just across the border. In recent years, Canadian tourism and international commerce have been especially attractive due to the softening U.S. dollar and strengthening Canadian conversion rate. A valuable byproduct of tourism is the enamored visitor who “discovers Spokane” and returns as a new resident or second-home buyer.
The May 2008 issue of Canadian Traveller magazine ( www.canadiantraveller.net) notes that Spokane “offers abundant natural beauty and recreation opportunities, as well as four distinct seasons and 260 sunny days each year, helping the city keep the promise of its slogan ‘Near Nature. Near Perfect.’” The tourism ad placed in that issue by Greater Spokane Inc. tells Canadian readers, “No doubt you’ve noticed that our money’s worth a little less than usual … and yours is worth a lot more … . Great for your summer vacation, so plan a trip to Spokane.”
Tourism often leads to relocation — from other states, as well as other countries. The National Association of REALTORS® reports that international real estate purchases in the United States continue to be a significant share of business for many REALTORS®. According to the 2008 NAR Profile of International Home Buying Activity, foreign exchange rates have helped make U.S. homes more affordable for international buyers, and Canadians are leading the way.
The International Buyer
The top six countries of origin for foreign home buyers, in rank order, were Canada, the United Kingdom, Mexico, China, India and Germany. This year, Canada replaced Mexico as the country with the largest share of foreign buyers in the United States. The percentage of Canadian buyers doubled from last year, from 11 percent to 23.5 percent.
“Many international buyers recognize that real estate is an excellent investment and are drawn today by abundant inventory, low interest rates and a softer dollar. These conditions allow them to own their own piece of the American dream,” says Dick Gaylord, NAR President.
Also of importance, the rise of the Euro (currently trading at $1.47 USD) presents a clear opportunity for European buyers, who often are cash buyers, wanting to invest in the United States for economic stability. U.S. interest rates remain relatively low and favorable over other parts of the world where rates may be 12 percent or higher. Favorable currency, favorable pricing and favorable interest rates summarize our appeal to foreign home buyers.
Spokane REALTORS® are aware that long-term prospects for home sales are heavily influenced by the number of people moving in and out of the area each year. The fastest growing segment of our in-migration population is made up of foreign-born residents. In Spokane County, the increase in the foreign-born population for the period 2000 to mid-2006 was 22,865 residents, 5.1 percent of the overall population. This was a 6-year increase of 22.2 percent in the foreign-born population compared to an increase of 6.2 percent in the native-born population.
Spokane’s Population Growth
A general note on long-term area growth: The population of Spokane County/MSA was estimated by the U.S. Census Bureau at 446,706 residents in July 2006; that’s a 15.7-percent increase from 417,939 in July 2000. The current rate of population change in Spokane, if continued, would result in a population in 2025 of 601,100. That is 43.8 percent larger than the 2000 population.
As celebrated earlier this month, Spokane has earned a note of distinction for the “Unity” of our community. The future of Spokane continues to look bright as new residents arrive and anchor our growing economy. Welcome to all newcomers – for a warm “welcome home,” contact a Spokane REALTOR® today.
Source: The “2008 NAR Profile of International Home Buying Activity” is based on responses from approximately 4,000 REALTORS® who serve foreign buyers. It describes international home buying activity in the United States during the 12-month period from May 2007 to May 2008.