A new chill is sweeping through Florida’s sunny real estate market – and it’s coming from the north.
Canadian homeowners, long among the largest foreign investors in U.S. real estate, are now selling their homes their homes in Florida amid rising trade friction, tariff fears and a weakened Canadian dollar that makes property more expensive than ever.
Historically, Canadians have made up about 13% of all foreign buyers of U.S. real estate. In recent months, searches from Canadian buyers in Florida have decreased. according to Realtor.com. Adzem, who has seen a surge in calls from her Canadian clients, cites three main reasons for wanting to leave the Sunshine State.
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“[Number] one of which is the higher cost of holding real estate in Florida. Secondly, I feel like the trade tensions and the enormous volatility that we’re seeing with the exchange rates between the US and Canadian dollars also influenced that decision. And then, very importantly, on a personal level, they feel like they don’t feel as welcome in the United States,” she explained.
Canadians living in Florida are reportedly trying to sell their properties sooner or later as trade tensions fuel uncertainty in the market. (Getty Images)
“I always reassure them that that is absolutely not the case, but I think sometimes perception feels like reality.”
Recently, President Donald Trump halted trade talks with Canada after the country used former President Ronald Reagan’s words on tariffs as a swipe at Trump’s policies, and Canada favored its own protectionist policies.
In response, Trump imposed an additional 10% tariff on Canadian imports – on top of an already existing 35% levy, a 25% car tax, a 40% transshipment penalty and new immigration registration rules for Canadians in the US.
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“When we talk to our Canadian customers, they feel that the overall tension between Canada and the United States, when it comes to negotiations and economic policy, makes them feel like there is certainly cause for concern,” Adzem noted.
Volatile exchange rates between the U.S. and Canadian dollars are also weighing heavily, with a Canadian dollar worth about 72 cents on Wednesday.
“While they usually cite the tariffs on steel and all the Canadian products that America and Americans buy, they just feel that the general tensions are going to have an impact on the Canadian economy, which then leads to uncertainty about how they invest their money, how they spend their money,” Adzem said. “So I would say that several aspects of trade negotiations have certainly affected the overall sentiment when it comes to volatility and uncertainty.”
“Money talks, right?” she added. “So when it comes to the cost of carrying U.S. property, especially if they have to pay with Canadian dollars, which has had a lot of fluctuation against the U.S. dollars… many of the snowbirds we’ve worked with feel like it has become quite expensive to continue to enjoy all their winters here in Florida.”
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Taking trade tensions into account, Adzem said its high-net-worth clients are strategically repositioning their assets as they consider selling their properties in Florida.
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“They first consult with different advisors, not just real estate advisors, but also with investment advisors, and then see what impact everything has on them personally and financially,” she says. “And the way it translates into their real estate decisions is they’re deciding how they’re going to prioritize their lifestyle and balance it with the economy.”
“Careless [of] Whether they’re from Ontario, whether they’re from Quebec, they have one thing in common: they like to feel like they’re proactively making decisions for themselves and their families, rather than waiting and reacting and just seeing how things will unfold and develop on their own,” Adzem explained.
This new wave of Canadian sellers could change the landscape of the South Florida market, especially if inventory increases.
“Prices will remain very similar in terms of overall overall prices… And actually having more supply on the sell side will be important for us,” Adzem said. “We need more inventory. While we were hoping to get more inventory over the summer, we didn’t get as much… That will meet the demand from domestic buyers, especially from California and New York.”
Adzem also dismissed fears of oversaturation, believing there is still room for growth before the tipping point is reached.
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“That’s the million-dollar question,” she said. “We anticipate continued demand. And we believe that Florida’s governor has made real strides in helping continue the development of Florida’s infrastructure to accommodate many new buyers.”
“I call it a realignment… Real estate is all about emotion, and what we know for sure is that once people feel more settled and confident, they will continue to want to buy.”
