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People are emotional about vacationing in the United States, but should feelings trump decisions that can have a serious financial impact on your wealth?

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For Canadians who own property in the U.S. that is the dilemma that won’t go away, a year into the trade war.

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It’s easy to scream “boycott” when the American president is musing about Canada becoming the 51st state, but the prospect of selling a long-term investment like a vacation property into a cooling U.S. real estate market is one that is weighing heavily on some.

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Take David Pridham, an office leasing representative in Ottawa, who had conflicting feelings about selling his semi-detached home near Vero Beach, Florida.

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“We bought down there during the subprime crisis,” said Pridham, about a 2008 purchase during a period when bankruptcies were common, and prices plunged. “I asked myself when in my lifetime the dollar is going to be at par again.”

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He couldn’t say no back then, even though retirement was years away. Pridham would visit his second home a few times a year with his family, but didn’t bother to rent it out, justifying the US$21,000 in annual carrying costs because the property was appreciating.

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Now a new retiree, he put his second home on the market this year, and when an offer came in, three per cent less than the asking price, with a quick close, he jumped on it.

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“We were ready to lower our price because the market was going in the wrong direction,” said Pridham, adding that offensive comments south of the border helped tip the balance against a vacation home that was very convenient. “We got to know a lot of people down here after 15 years, and it was just a 24-hour drive, booking two (overnight hotel stays) along the way.”

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Aside from politics, Evan Rachkovsky, director of research and communications for the Canadian Snowbird Association, said practical financial issues are driving decisions today.

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“I think it’s a lot more complex. Costs are higher, particularly in Florida, due to hurricanes and other natural disasters. You’re also dealing with currency fluctuation. Those all play a part as well. It’s a perfect storm,” he said, adding that more of his members are looking to rent.

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If you are selling that second home, you missed the peak of the market, according to Brad Case, chief residential economist with Homes.com.

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The latest data from Florida Realtors shows the median sale price for condos or townhouses was down 5.8 per cent from a year ago across the state, to $305,998 as of the third quarter.

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Case said the sunbelt parts of the U.S. saw significant price hikes during the COVID pandemic, and that pricing is now moderating in the region.

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“During the COVID pandemic, you had a bunch of people taking advantage of the opportunity to work from home,” said Case. “There was a huge increase in demand, and Florida was a great example.”