[LINK] "Desert climate, urban amenities lure Canadians to Palm Springs"

[rfmcdonald]

Felicity Stone's Postmedia News article describing how Canadian investment has apparently come to dominate the real estate market in the California resort of Palm Springs is one article of many underlining the shift in relative economic health between Canada and the United States. Canada's relative economic health and the absurdly strong dollar have made all manner of new relationships possible.

"We all speak Canadian down here," says Palm Springs Re/ Max agent Jeff Miller. "Sometimes it almost feels like Little Canada."

Although Canadians have always vacationed in Palm Springs, low U.S. real estate prices and the high Canadian dollar mean there are now more than ever -and they're buying property.

Miller estimates 85 per cent of his sales have been from Canada over the past three years, primarily from British Columbia and Alberta. "We have a very busy market here right now," he says, "but I would say the great majority of buyers, not just for us but in general, are Canadian, whereas when the market was hot, probably the majority of the marketplace were people within California who were investing or just wanted a second home."

Since the beginning of the year, real estate agent Dick Sakowicz, also with Re/Max, has sold three properties to Canadians at prices ranging from $150,000 to $1.2 million, with more in the works. Although most Canadians purchase Palm Springs property for personal use rather than for rental income, the high foreclosure rate means a good investment for anyone able to pay $150,000 to $250,000 US cash, he says. With rents from $1,200 to $1,500 a month, cash return after expenses can be between seven and eight per cent.

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Palm Springs' popularity is due not only to the low cost of housing. There is also its desert climate, accessibility, resort lifestyle and mid-century architecture. "Just about everybody I know has bought a house in Palm Springs," says Vancouver lawyer Carlos Brito, who purchased a three-bedroom house a couple of years ago when prices fell. "The warmth down there is easy to take, it's easy to get to, and owning property in the States is not very different from here so there's some comfort in that."

He tries to use his house one week a month. He purchased in Palm Springs because "A lot of the other desert cities, they do roll the sidewalks up at eight o'clock, but not Palm Springs. Every weekend there's an event on."

[. . .]

In November, Vancouver credit union executive Steve Canning bought a 2,000-square-foot house with private pool in a gated community in Palm Desert. He golfs, but also likes to hike and run.

Location was another factor. Even in the off-season there are frequent flights from Vancouver via L.A., and Allegiant Air offers low-priced direct flights from Bellingham, Wash. It is also an easy drive to Phoenix, L.A. and the beach in Santa Monica. Unsure how much he will use the place, he bought it with a partner who shares the maintenance costs. "I wanted to buy something in the sun," he says, "and to get your foot in the door, it was the right decision for us to go 50-50 on it."