The following is an e-mail I sent to the Canadians in my database the other day. If you’re a regular reader and even glance at the widget on the right side, you know the Canadian dollar’s been in rally mode.
Even with the drop in local market values, nothing can swing the equation further faster than a change in the exchange rate. Currency risk is the third variable in the buying equation and, to my mind, the most important.
[tags]Phoenix real estate[/tags]
In case you missed it, Phoenix real estate became about 3 percent cheaper over the last week.
This has nothing to do with values here in the Valley … in several areas the market has started to stabilize thanks to greatly reduced inventory. Rather, it has everything to do with the exchange rates between our two dollars.
The CAD is rallying again and now sits just below the 90 cent mark, a far cry from the 77 cents of March. With each penny movement, the price of buying real estate here in Phoenix or elsewhere in the states swings harder and faster than home values themselves.
Of course, the Canadian dollar’s rally doesn’t mean you have to buy right now. For some this is the right time and for others there are other considerations.
But if you’re semi-seriously thinking about purchasing by the end of the year, and especially within the next couple of months, it might be worth thinking about how best to protect your dollars now against an adverse move later.
I’ve got folks who can help as several clients can attest. If you’d like to learn more about protecting against currency risk or if you have questions about the market, I’m only a phone call or e-mail away.