Skip to main content

I Love My Canadians!

By
Jenell Fontes
In the past couple of years Canadians have made up over 30% of my sales and now my Canadians seem nowhere to be found. Due to the fact that the Canadian Dollar has taken a huge hit in the exchange rate and our home prices have continued to go up, my Canadian clients have had to face a double dose of inflated reality. I found this really great article that explains the disappearance of the Canadian Home buyer. The questions begging to be answered is will the strength of their dollar improve anytime soon as I only see housing getting stronger in the next couple of years. So, even with the escalation in price and deflation of currency I still think the deal are out there and it is still a good time to buy.

“What a price Canadians have paid lately, though. Over the last two years their purchasing power here in the US has declined sharply, and since just last summer it’s flown farther south than a goose, which really should be their national bird (apparently they can’t agree on one). Just look at the Currency Shares Canadian Dollar ETF (ticker symbol ‘FXC’) which tracks the exchange rate between the US and Canadian dollars. The ETF’s share price has plummeted more than 20% since the end of 2012 (see FreeStockCharts image below). That qualifies as a ‘hit’ and it’s gotta hurt somewhere.


I feel for our Canadian friends, I really do. But did I mention they’re smart? Just look at the ones who took inflated Canadian dollars back then and bought depressed desert real estate with depressed US dollars. Wow! What a great move! That money benefited from a double-whammy of rebounding home prices as well as the surging US dollar. So while it takes more money from back home to buy that Starbucks coffee here or a Living Desert membership, their money parked on this side of the border has grown handsomely. So let’s be nice and encourage our ‘poor’ Canadian friends to keep their homes and their money here in the desert.  
Hug a Canadian today!”  

 Source: Ted Ross www.theodoreross.com

www.jenellfontes.com

Comments

Post a Comment

Popular posts from this blog

Low Inventory, Rising Tides

By
Now if you have been paying attention to the Coachella Valley something peculiar has been happening, it is explainable but it exemplifies a larger problem in our current real estate market. Today there are approximately 650 active properties on the market as of February 2022. Around this same time last year, there were over 2,000 active properties on the market. Now to make it clear the typical  inventory  of the Coachella Valley is usually somewhere between 4-5,000 units. Currently this is a clear identifier demand is extremely high, but how long can that last as supply remains so  low . As interest rates continue to rise there is going to be a decrease in buyer demand, and we can already see that as the average days on market increases. This past year we saw houses being sold within hours of being posted on the MLS, multiple bids above asking price, and the sheer force of movement that has filled up the valley with transplants and former city-sl...
Post a Comment
Read more

How to Buy a Home like an Investor!

By
The purchase of a home is for most people the largest investment they will make in their lifetime! Your home is both an investment and a place to live.  For the past decade I have worked with a lot of investors and the same principals that make my investors rich, apply to any real estate purchase. Here are some real estate buying tips I learned from the investors I've worked with! First off, it is all about the numbers!  Make sure the numbers work up front, define and estimate  if there is money to be made and upside in the resale due to market, trends, or added value… Basically, if the numbers don't add up from the beginning then don't make the deal. Hoping that the market improves isn't a tactical game plan, you need to back up your predictions with cold hard facts and proven economic growth patterns.  This is where you need the help of a trusted real estate advisor that understands the local market.  Secondly, make your mone...
Post a Comment
Read more

Want to go Surfing in the Desert?

By
Talus is a NEW residential Development that you might want to know more about because this project is changing the face of property development for the Coachella Valley! For those of you that have recently driven on Avenue 52 or Jefferson on their way to PGA, Tradition or Griffin Ranch, you may have noticed a new sign on the way that reads "Talus." You might be asking yourself what is Talus? Or maybe you already googled it, or heard some people at the office or the gym talking about it. But I want to discuss the implications of this enterprising project for the surrounding neighborhood, and I think we should go over it together. Talus is a brand new resort experience developing in our backyard! This project includes hotels, The Montage and Pendry, two notable luxury brands that will be hosting the resort-styled hotels, private branded residences, a new restaurant, spa facility, conference center, club house, and more! The first part of the project should be finished by mid 20...
Post a Comment
Read more