SOURCE: BMO Private Bank

BMO Private Bank

April 11, 2013 07:07 ET

BMO Private Bank Report: Canadian Snowbirds Helping Fuel Florida Housing Recovery

SARASOTA, FL--(Marketwired - Apr 11, 2013) -

  • Housing prices up 12 per cent in Florida since April 2011
  • Canucks are largest foreign buyers of Florida housing
  • More than 500,000 Canadians currently own real estate in Florida
  • Sarasota-Bradenton-Venice is number one area for Canadian buyers

According to a report by BMO Private Bank, 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 numbers, the price of a single family home in South Florida surged 12 percent from its low point hit in April 2011.
  • The Florida market is showing remarkable resilience compared to the national average which has gained nine percent off the bottom. 
  • 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 percent of all real estate purchased 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 of a home in Canada. At the same time, the Canadian dollar is trading nearly 10 percent 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 that are particularly appealing to Canadian buyers. 

  • Sarasota-Bradenton-Venice -- 17 percent
  • Orlando-Kissimmee -- 13 percent
  • Miami-Ft. Lauderdale-Palm Beach -- 13 percent
  • Cape Coral-Ft. Myers -- 9 percent
  • Tampa-St. Petersburg -- 9 percent
  • Naples-Marco Island -- 9 percent*
  • Other -- 30 percent

About BMO Private Bank, a part of BMO Financial Group
BMO Private Bank offers a comprehensive range of wealth management services that include investment advisory, trust, banking and financial planning to meet the financial needs of high net worth clients. Through integrated teams of experienced financial professionals, BMO Private Bank helps its clients realize their financial and lifestyle goals with solutions that are custom tailored and delivered with the highest level of personalized service.

BMO Private Bank is a brand name used in the United States by BMO Harris Bank N.A. Member FDIC. Not all products and services are available in every state and/or location.

BMO and BMO Financial Group are trade names used by Bank of Montreal.

*Source: National Association of Realtors

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