Meanwhile, the Canadian dollar is no longer worth more than the U.S. dollar and is now trading four

OTTAWA With the loonie losing value against the American dollar, U.S. home prices climbing and the potential for higher mortgage rates, Canadian snowbirds may have missed the best time to buy a winter getaway property.
According to the most recent data from the Washington-based National Association of Realtors, the median home in the U.S. during the first quarter of 2013 fetched $176,000. That s about 12 per cent more than a year earlier, although it remains well below a peak of $227,000 prior to the 2008-09 recession.
Even so, the national figure vastly underestimates the plunge in some sunbelt regions such as Florida and Arizona — the two most popular destinations for Canadians — since the heady pre-slump days when prices shot through the roof and financial controls for issuing mortgages were practically non-existent.
Starting in about 2007, Florida, and to some extent Arizona, were hit by a tsunami of factors that contributed to the plunge in property values. Along with the national recession, these states were also hammered by years of overbuilding, a higher level of foreclosures, and a steeper fall-off in demand.
Joe Morgan, a.k.a. the Golf Home Guru, an agent specializing in golf-related properties in southwest Florida, said prices for vacation properties where he lives in Naples tumbled by 50 per cent or more.
The realtors report shows 2012 and 2013 were the best two years for sales to foreigners in history, with Canadians accounting for almost one-quarter of those purchases — twice as many as any other source nation.
(Snowbird) business has been solid now for three years in a row, said Morgan. Probably two, three years back was the ideal time to buy, but our prices have started going up over the last 12 to 18 months.
Distress properties, foreclosures and short sales, are a lot more limited now than they were, but there s still some opportunities out there, he said. So I don t think there s any reason for Canadians to give up on the dream at this time. There s still some strong values. It s just that they didn t catch the market at its bottom.
With the American economy widely projected to pick up steam starting in the second half of 2013 and returning to a more traditional growth rate of near three per cent in 2014, the national real-estate association small travel trailers predicts home prices small travel trailers will continue to appreciate over the next few years.
Meanwhile, the Canadian dollar is no longer worth more than the U.S. dollar and is now trading four to five cents below parity, meaning any purchase comes with a surcharge once exchange rate conversion costs are added.
Some economists believe the loonie will hold at the current level for the rest of the year, but some, including the TD Bank, is projecting a fall to 90 cents US by the end of 2013. Few think the Canadian currency will strengthen this year.
They were artificial prices caused by phoney financing small travel trailers that was available, and the inventory got so low that it didn t matter what the property was, people wanted it. It got ludicrous, said Morgan. I think the market is much more conservative now.