Canadians find value in Florida

If you're seeing a lot more Canadian license plates on Southwest Florida roads these days, it's not your imagination.

David Jacobson says we'll likely see many more in the years ahead. As the U.S. ambassador to Canada from 2009 until last year, he knows something about our northern neighbors.

Despite the strong rebound in residential real estate prices in areas such as Sarasota and Naples, Southwest Florida remains a bargain to Canadians, says Jacobson, now vice president with BMO Financial Group.

Jacobson was in Naples recently meeting with BMO clients from Canada who are seasonal residents here. He says Canadians continue to view Florida real estate as a bargain because of the relatively strong currency exchange and lower prices relative to Canadian real estate.

Foreign investors, particularly from Asia, have driven the median home prices in Canada to double that of U.S. homes. What's more, the Canadian economy has weathered the downturn more robustly.

“We're not just talking about retirees,” Jacobson says. “We are talking about people in their 40s and 50s.”

Canada has a tradition of second-home ownership. Many Canadians have second homes they call “cottages” on the country's thousands of lakes, Jacobson says.

Despite the bargains, Jacobson says Canadian clients tell him they're concerned about the future of the U.S. economy and politics in Washington, D.C. “Canadians follow what's going on in the United States very closely,” Jacobson says. “It's a whole lot easier when the U.S. does well.”