Samantha Shelton, the president and founder of Align Lending, a mortgage brokerage based in Waterford, Michigan, near the Canadian border, has observed significant shifts in the interaction between Canadian buyers and the Metro Detroit real estate market. Shelton noted that prior to the COVID-19 pandemic, it was common for Canadians to travel into the U.S. to purchase properties, including second homes and investment properties.
The pandemic, however, halted this trend due to border closures, leading to a noticeable decrease in Canadian buyers entering the market. Although traffic has begun to pick up, Shelton remarked that the buyer momentum has not yet fully rebounded to pre-pandemic levels.
Additionally, Canadian buyers face another challenge due to impending tariffs, with new guidelines set to take effect on August 1, except for goods that meet the standards of the Canada-US-Mexico Agreement (CUSMA). This economic landscape has heightened concerns and potentially affected Canadian investment interest in the U.S. real estate market.
Despite these challenges, there is a glimmer of hope as market dynamics slowly shift back towards familiarity for Canadian buyers. The ongoing recovery from pandemic-related disruptions could pave the way for renewed real estate opportunities in the Detroit area, fostering a re-establishment of cross-border investments. The future may still hold promise for growth in the Michigan real estate market.