With the US dollar costing over $1.25 Canadian one could be forgiven for thinking that bargain-hunting for houses in Arizona is starting to come to an end. Average prices have climbed from their 2011 lows. Medium prices in the Phoenix area currently range from slightly above $200,000 to slightly under. This variation results from statistics which include different districts and time periods. However, $200,000 times 1.25 equals $250,000 in Canadian money, which may still represent a bargain for many Canadian snow-birds. Those used to Vancouver and Toronto housing prices may find this cheap. In Calgary where the December 2015 median house prices is $407,750, perhaps not as much.
Having said that, it is becoming harder to find Phoenix area houses under $300,000 US. However, in the outlying retirement areas such as Sun City in the north-west, Mesa or south Chandler in the south-east there are still inexpensive houses to be had. Granted the search might take longer and the negotiations be more difficult but as a second home away from the snow and cold it still could still be considered affordable.
Buying the house is just the first step. After that you have to pay property taxes, HOA fees, utility bills and house maintenance costs along with insurance on your property. Yard maintenance can also be a sizeable expense even with desert xeriscaping. Then your everyday living expenses need to be considered. These can actually balance out with the cost of living in Canada. Cheaper gasoline, food such as chicken, eggs, butter and milk in the USA can help to offset higher prices for meat, some produce and seafood. If you are a wine lover your favourite beverage is usually much cheaper in the US. When the cost of living is tallied and converted into Canadian dollars it is likely to be about the same or perhaps a little bit less than at home. Interestingly electronics and computers as well as some automobiles appear to be less in Canada than in the US, allowing for currency conversion.
Still when the snow piles up against the door and the wind howls through the window cracks, paying for an escape to the desert sun for the winter months isn’t such a bad use of your money in retirement.
Note:
Many mobile homes and trailers are for sale in the greater Phoenix area. I don’t see them as a wise investment because unlike a house or apartment they do not appreciate when house prices increase. They are more like a car in that they depreciate with use and age. The trailer pad can also be a dicey investment should you buy rather than rent. That’s because as the vacancy rates in these parks increase your fees might also increase to offset the owner’s loss of revenue. Nonetheless they do represent an inexpensive way to obtain a place to live during the winter in the Valley of the Sun.