While the Average price of a Canadian home has doubled over the past 15 years, prices in South Florida – and much of the United States – have dropped as much as 50% since the 2004-2006 peak years.
In Canada, the average price of a home sold for just over $339,000 in 2010, up from $151,000 in 1995 according to an article earlier this year in the Montreal Gazette. Price appreciation has resulted in significant increases in equity in Canadian homes. This has made South Florida’s fire sale a great temptation for Canadian home buyers.
Canadians, by far, make up the largest percentage of international buyers and investors in the Sunshine State,” reports Patricia Fitzerald, president of trade group Florida Realtors. Fitzerald accompanied Florida Governor, Rick Scott to Canada in June in an attempt to convince Canadian investors to come to Florida. Thirty-six percent of all international real estate sales in Florida go to Canadians.
Fitzerald described the trip as a “trade mission,” stating that it offered “a prime opportunity to demonstrate the benefits of doing business – and living – in Florida.” Scott added that many Canadian companies see Florida as having a “favorable business climate” and emphasized his own administrations “commitment to cut taxes” as one of the reasons many international buyers invest here.”
The primary reason for Canadians to purchase properties in Florida is the buying power. The decline in the local real estate market combined with the buying power of the Canadian Dollar offers Canadians an opportunity not seen in past years. Plus, the proximity and the warm climate make it an ideal winter vacation place.
With the rise in their home equity, many Canadians have chosen to refinance their existing home to access capital and then purchase their Florida property with cash, avoiding the need for financing.
For more information about buying or selling real estate in Fort Lauderdale, contact John Sabia to day at 954.850.2397.
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