TORONTO, ONTARIO--(Marketwired - Apr 11, 2013) - According to a report by BMO Financial Group, Florida's housing market is on the rebound and Canadian Snowbirds are playing an important role in its recovery.
The report notes the following:
According to the most recent S&P Case-Shiller data, the price of a single family home in South Florida surged 12 per cent from its low point hit April 2011.
There is growing demand for Florida real estate from foreign buyers, most notably Canadians, who have helped support property prices.
Canada is Florida's number one source of foreign tourists and the state's number one foreign buyer of real estate. In 2010, Canadians accounted for 36 per cent of all real estate purchases by foreigners.
More than 500,000 Canadians currently own property in Florida.
"Beyond the obvious attraction of great weather and beautiful beaches, there are two factors that are making Florida real estate an especially good value for Canadians," noted Jack Ablin, Chief Investment Officer, BMO Private Bank. "The first is that Florida properties are a bargain compared to real estate in Canada. The median priced home in Florida is nearly half than that in Canada. At the same time, the Canadian dollar is trading nearly 10 per cent above 'fair' value versus the U.S. dollar, arming Snowbird shoppers with extra buying power."
Where in Florida are Canadians Buying?
The report also outlines the key geographies in Florida where Canadians currently own real estate. These include:
Sarasota-Bradenton-Venice (17 per cent)
Orlando-Kissimmee (13 per cent)
Miami-Ft. Lauderdale-Palm Beach (13 per cent)
Cape Coral-Ft. Myers (9 per cent)
Tampa-St. Petersburg (9 per cent)
Naples-Marco Island (9 per cent)
Other (30 per cent)*
A BMO report from 2012 found 16 per cent of Canadians would consider buying a home south of the border. Furthermore:
Of those considering buying property in the U.S. in 2012, 56 per cent would do so to gain a vacation or secondary property.
Forty-four per cent cited affordability as a motivation to purchase a home in the U.S.
One-third viewed the purchase of a property in the U.S. as a long-term investment (29 per cent).
Laura Parsons, BMO Mortgage Expert, advises that those interested in purchasing U.S. properties should consider financing the new purchase with a financial institution in the U.S. - preferably a Canadian-based bank with branches south of the border. "Having expertise at the local level is always the best approach, particularly when it comes to real estate, as conditions and trends can vary drastically from one location to the next."
Ms. Parsons noted that BMO customers can visit a BMO Harris branch in the U.S., which has locations in Illinois, Indiana, Arizona, Florida, and Wisconsin. "There's a lot to consider when making this decision, and having a Canadian partner can help provide a clear understanding of the differences between Canadian and U.S. financing which, in turn, can save a lot of time and headache," added Ms. Parsons.
For more information, please visit www.bmo.com.
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*Source: Latest data from National Association of Realtors.