Canadian buyers are retreating from high-end South Florida markets, driven by the Trump administration’s trade and immigration policies and a softer exchange rate, even as Latin American demand remains strong.
Canada’s share of foreign buyers shopping for U.S. homes online has dropped to 32.1 percent in the third quarter, from 36.6 percent in the same period of last year, according to a new report from Realtor.com. Still, Canada remains the top source of international buyers in the U.S.
Douglas Elliman’s Senada Adžem, who handles luxury listings and sales in Palm Beach County, said that currency fluctuations and trade war volatility are factors. She called it “unusual” that she is seeing an uptick in Canadian sellers and a decline in Canadian buyers, referring to the $10 million-plus market.
“We all love our Canadian clients and friends. There is this perception that generally because of the trade negotiations that they’re not as welcome in the U.S. There is this feeling on top of the actual financial and logical reasoning that they may decide to sell or not buy immediately,” Adžem said. “It’s also more difficult to get visas, and the cost of carrying properties in the U.S. has increased significantly.”
A high net worth client from Canada is in a “holding pattern” because of the Canadian dollar weakening, said Corcoran Group agent Mick Duchon. The Canadian dollar was worth 71 cents in U.S. currency on Monday afternoon.
“[Canadians] love being here. They love America, they are still interested in being here,” Duchon said. “Things very quickly got much higher priced for them. It’s more of an economic concern.”
Foreign flow
As Canadians pull back in South Florida, brokers told The Real Deal they’re still seeing demand from other countries, like Colombia, Mexico, Brazil and buyers from European countries. Miami is still the top city with the most international views among top U.S. metros with 8.4 percent market share, according to the Realtor.com report. New York and Los Angeles followed.
As they have for years, condo developers in Miami are closely following relations between the U.S., Mexico and countries in Latin America. Michael Sadov, sales director at Okan Group’s Okan Tower, which is under construction in downtown Miami, said about half of the project’s buyers so far are foreign.
Colombian buyers make up a quarter of those deals. Mexican buyers are second in line. Sadov said he wrote a contract last weekend for a Venezuelan buyer — someone living in the U.S. with a business in Venezuela. Brazilian interest has also increased.
However, Trump’s positive relationships with foreign leaders are not translating to real estate purchases in Miami. The Trump administration’s backing of Argentina’s President Javier Milei and his party’s victory in the recent midterm elections are encouraging Argentinians in Miami to take their money back to their home country, Sadov said.
“It’s great the U.S. is making these alliances, but it’s not translating to any kind of shift [to Miami],” he said. “It’s actually having an adverse effect for our real estate market.”
Continued demand from buyers in the Northeast, California and the Midwest has helped offset fluctuations in the foreign buyer pool, brokers said.
Duchon said the buyer pool for high-end waterfront homes is still primarily American, and he is part of the majority who believe that will intensify if New York Rep. Zohran Mamdani wins the mayoral race on Tuesday, which is expected.
“We’re anticipating a wave of new buyers to come into the market,” Duchon said.
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