British Columbians looking for investment opportunities or cheap vacation homes are scooping up bargain-priced real estate in the depressed market south of the border.

Statistics show that twice as many Canadians are buying property in the U.S. right now compared to last year. In Birch Bay, Washington, realtor Mike Kent says 90 per cent of his buyers are from B.C.

He believes the rising loonie is a big incentive for Canucks. The Canadian dollar hit a three-and-a-half year high on Tuesday, closing at 106.07 cents U.S.

"Our loss is Canada's gain," he told CTV News.

"We've had more activity in the last 30 to 60 days than we've had in the last six to nine months, because once you broke $1.05, it really got folks' attention."

Birch Bay is just an hour's drive from most of Metro Vancouver, and prices are on average a third to 50-per-cent cheaper than in B.C. Kent says about a quarter of buyers throughout Whatcom County are Canadian.

Larry Cardy bought a second home in Birch Bay for just $275,000 after he and his wife retired and downgraded to a small house in Langley.

"The market has dropped significantly since 2008, so we found it was excellent value for us to buy a vacation home just across the border," he said.

But Tsur Somerville of the University of B.C.'s Sauder School of Business says there are some risks to buying in the U.S.

"You're buying in a place with a different tax regime, a different legal framework, you're a non-resident, and as a non-resident, oftentimes places create certain challenges for you -- both on the tax side and on the ownership rights side, so the risks you face are different," he said.

He says that vacation homes can be harder to sell, and recommends against buying them as investments. He advises instead to pick a home in a place where you would be comfortable spending six months out of every year.

U.S. law requires Canadians without residency status to stay a maximum of six months, less one day, per year – which leaves plenty of time for summer and weekend trips.

With a report from CTV British Columbia's Peter Grainger