The housing market in Florida is “on the rebound” and Canadian "snowbirds" are playing an important role in its recovery, according to research from BMO Private Bank.

House prices have gone up 12 per cent in Florida since April 2011, and while there is growing demand for real estate there generally from foreign buyers, Canadians are particularly keen on the Sunshine State, BMO found.

Canadian snowbirds are the largest buyers of houses in Florida, with some 500,000 currently owning real estate there. Even back in 2010, they accounted for 36 per cent of all real estate purchased by foreigners.

“Beyond the obvious attraction of great weather and beautiful beaches, there are two factors that are making Florida real estate especially good value for Canadians,” said Jack Ablin, chief investment officer of BMO Private Bank.

He highlighted that properties in Florida are a “bargain” compared to real estate in Canada, with the average cost of a home in Florida nearly half the cost of one in Canada.

Meanwhile, the Canadian dollar is trading nearly 10 per cent above fair value versus the US dollar, said BMO. This is “arming snowbird shoppers with extra buying power,” it added. “The Florida market is showing remarkable resilience compared to the national average which has gained 9 per cent off the bottom.”

Where Canadians are buying

According to the private bank, popular spots are:

• Sarasota, Bradenton and Venice (17 per cent)
• Orlando and Kissimmee (13 per cent)
• Miami, Fort Lauderdale and Palm Beach (13 per cent)
• Cape Coral and Fort Myers  (9 per cent)
• Tampa and St Petersburg (9 per cent)
• Naples and Marco Island (9 per cent)
• Other (30 per cent)

A wealth management hotspot

In line with the housing trend, Florida has also attracted much attention from a host of wealth managers during the past year or so. Most recently, New York-headquartered Tiedemann Wealth Management hired Thaddeus Shelly as a managing director and senior advisor in Palm Beach.

Last month UBS Wealth Management Americas scooped up two former Morgan Stanley Wealth Management advisor teams in Aventura, managing a combined $2.37 billion in assets under management. Meanwhile, JHS Capital Advisors, a dual-registered broker/dealer and RIA, hired Kelly Connelly as a financial advisor and first vice president of investments at its new office in Sebring.

In other recent news, highlighting the buying power of Canada's wealthy citizens, the number of high net worth individuals in Canada grew by 7.7 per cent in 2012 to reach 422,000, reversing a 3.6 per cent decline in 2011, according to recent research from WealthInsight. It would therefore be interesting to learn how many of the Canadian snowbirds themselves are HNW - or indeed UHNW - individuals.