Verandah, from the Bonita Bay Group, is a 1456-acre golf-course community in St. Myers with homes starting in the $200,000s. The developer is now offering buying incentives.

The U.S. subprime mortgage disaster, which recently sent stock prices plummeting and pushed the American economy toward a full-blown recession, is giving Canadian snowbirds an opportunity to find homes in Florida at affordable prices, say real estate brokers on both sides of the border.

"We're seeing a tremendous amount of activity from the north," says George Niarchos, with the Miami-based Miller Group.

Niarchos, who represents Cypress Trail Condominiums, a 72-unit development in West Palm Beach, says Canadians are eager to take advantage of a strong loonie and incredible deals.

In late summer, two-bedroom, two-bath condos were starting at $229,900 (all U.S. dollars). These now cost $169,900 -- a decrease of about one-quarter.

"If ever there was a time in the real-estate market to buy, in terms of value, it is now. I don't think prices will be where they are a year from now," he says, explaining that while the prices won't likely drop any further, it's unclear how long they will remain at current low levels.

"When we see some traction in the market and absorption of existing inventory begins to take hold and there's supply and demand, we will start to see prices going up.

"So you have a buyer's market, plus mortgage interests rates are where they were four years ago and are continuing to drop."

Anthony Johnston, a broker with Coldwell Banker Sarazen Realty in Ottawa, who was once a licensed agent in Fort Lauderdale and visits regularly, expects prices to continue falling in the Sunshine State until the fall, if not for the rest of the year.

During this time, Canadians can expect to negotiate even better deals.

For instance, he says that in Hollywood -- a coastal community not far from Fort Lauderdale -- a homeowner recently listed a property at $369,000 and received an offer of $270,000. "They were ready to accept $290,000, or almost $80,000 less. There's so much on the market right now and so much to choose from -- and there's not a lot of buyers."

Condo developers who may not be willing to further lower the price of units are open to throwing in upgrades or extras.

Niarchos says that could include adding ceiling fans or track lighting, or replacing concrete patio blocks with tile -- changes often valued at between $1,500 and $2,500.

These incentives have even found their way into Florida's upscale market.

There are "definitely more sales incentives than we've ever had in this market," says Amy Gravina, vice-president of sales and marketing at Bonita Bay Group, which has seven master-planned communities between Naples and Fort Myers in the southwest.

For instance, at Bonita Bay's Mediterra in Naples -- where villas, coach homes and single-family homes range from $600,000 to over $7 million -- buyers may have their homeowner association fees paid or get a discount on golf-club memberships.

The latter is nothing to sneeze at considering it costs a whopping $185,000 for a membership at the club, which includes beach facilities and two courses designed by acclaimed architect Tom Fazio.

"Builders and developers are definitely sharpening their pencils and trying to be more competitive," says Gravina.

Cypress Trail, an adult gated community, has come up with a unique way to attract condo buyers. A rent-to-own program, launched late last year, enables residents to lock in a price for 12 months with the option to purchase. Developer MG Properties LLC, a subsidiary of The Miller Group, will also apply six months' rent to the price, presented to the purchaser in the form of a cheque at closing.

The superb values out there on the Florida market serve to counter a significant fly in the ointment for Canadians purchasing property in the state that has always made renting an attractive option for Canucks. Currently, non-full-time residents and Floridians who own a second home or rental property face higher property taxes than so-called homesteaders whose principal residence is there. Johnston says that as a result, Canadian snowbirds pay three times more -- and some estimates put the difference as high as 10 times -- in property taxes.

The two-tier system also gives permanent residents an automatic $25,000 reduction in the assessed value of their primary home. A 1995 state constitutional amendment, called Save our Homes, caps the annual increase in assessed property values and taxes at three per cent.

Another amendment, put to Florida voters on Jan. 29, would double the tax exemption to $50,000 and become portable, applicable to any future home regardless of price.

Another factor to consider is the high cost of property insurance, which can run into tens of thousands of dollars along coastlines vulnerable to hurricanes.

Still, the time to buy may never be better, given the low prices and high inventory, a point amplified by the Toronto Star last November, when it reported that one in every 95 homes across Florida had been foreclosed.

In October, there were 1,538 foreclosures in Lee County alone, which includes Fort Myers -- "an all-time high and most of them primary homeowners," said The Star.

But unlike buyers who put little or no money down, that led to the mortgage meltdown, more "stable" 55-plus Canadian purchasers often come with a down payment covering up to half of the purchase price, says Niarchos.

That buys them a piece of paradise, where they can play golf or tennis, hit the beach or the pool, enjoy some fun in the sun.

As Gravina explains, snowbirds come to Mediterra -- where some four per cent of the estimated 620 homeowners are Canadians -- for the lifestyle.

"Sales at Mediterra were stronger last year than the year prior," she says.

"We're doing well in this challenging economy."