Information for Canadians
buying homes or condos in Florida

  Here is a side by side comparison of mortgage basics

for Canadians buying Property in Florida.

Conditions are very good for Canadians looking to buy properties in SW Florida 
 
 .

 
Many Canadians will likely be seeing more than beaches, palm trees and sunshine as they head south. They will also be looking at for-sale signs on houses, townhouses and condominiums. And in here in SW Florida, there will be lots to see.

The Fort Myers, Cape Coral, Punta Gorda areas of SW Florida are the epic center of the  real estate bust of the USA after Las Vegas, there have never been more residential properties on the market in the than there is now, according to the Florida Association of Realtors. Many of these homes are wearing price stickers reduced 60% or more from when the market crashed in the 4^th quarter 2005.

Why is this? Many of the homes were previously owned and occupied by families, many of whom paid nothing down and were given low-interest mortgages for the first few years. But when it came time to renew those mortgages at higher, market-level interest rates, millions of owners throughout the United States discovered they couldn't afford the higher payments and their mortgages went into default.

Mortgage lenders seized the properties and put them back on the market to recoup their loans. But with hundreds of thousands of foreclosed homes placed on the market simultaneously, prices fell dramatically.

While this meltdown was happening in the resale market, home builders were busy, particularly in Florida, still building new homes. But now homebuyers were having trouble getting mortgages from nervous lenders. And home builders found themselves competing against plunging prices on homes only two or three years old just down the street.

The question in many buyers’ minds is how low will prices go? In real estate one must follow the trends and not the day to day fluctuations. For example in the Punta Gorda MLS system in October of 2007 there was enough housing inventory to cover market needs for a period of 40 months or more! As of September 30, 2010 inventory had decreased to an approximate supply of just less than 12 months. What does this mean for the buyer? The common rule is when inventory drops to six months or less then the market will switch to a seller’s market. Now I am not saying that this will happen overnight NO! There are still distressed properties that will enter the marketplace in the next several years due to still high unemployment rates due to the sluggish Florida job market. But we will turn the corner!

The other major factor is the Canadian Loonies to the US Dollar which has been bouncing along close to parity the past several years and from what I read in the financial newspapers is that the US Dollar is feeling pressure to reduce somewhat more in value. Reason more to start doing your homework!

Another factor I consider HUGE for Canadian and European buyers is the form of agency that is practiced here in Florida by the majority of real estate agents Transaction Agency which translate into the fact that they agents represent the transaction and not the parties! My question to my friends from the North if I would consider buying a lakefront property in Ontario or an ocean view house in Nova Scotia is what are these properties really worth. My fear would be overpaying and I would feel at a disadvantage with local buyers who have a much better understanding of their local market values.

Before I moved to Florida I lived and sold properties on Cape Cod and the Boston area. I became years ago a Certified Buyer’s Representative and when someone would come into my office my first question after introductions was “Would you prefer for me to work with you as a customer or as a client”? Big difference! Here in Florida that is called being a Direct Agent where my complete loyalty and fiduciary responsibility is to you the buyer.

For starts I believe this is enough said I welcome you to search my website, contact me with your questions and concerns and I will do my best to help you. In closing I would like to say that I have been many times to your beautiful country and have always admired that in spite of being residents of North America you have maintained many of the ties and traditions of your European heritage. I look forward to meeting and helping you.