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| 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.
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