Perspective For Canadian Buyers

Jonathan Dalton, Phoenix Real Estate AgentAs the currency rate fluctuates, keep in mind that a rate of $1.02 Canadian to an American dollar still is not nearly as expensive as $1.20 Canadian. And that’s where things stood not all that long ago.

In other words, while the rate’s not as favorable as it was back in November, it’s far better than it’s been over preceding months and years.

[tags]Canadian buyers Arizona real estate, Phoenix real estate[/tags]

Jonathan Dalton

Jonathan Dalton is a 40-plus-year resident of the Valley and has been helping folks buy and sell homes since 2004. He can be reached at 602-502-9693 or info at allphoenixrealestate.com.

0 Comments

  • rex 9 years ago

    how would a CAD 1.22 premium over the greenback work in favour of a canadian wishing to buy in arizona ?

    thanks

  • Jonathan Dalton 9 years ago

    Hi, Rex … clearly, not as much as it would have worked in the favor of a Canadian 10 months ago when I wrote the post.

    If anything, there’s slightly more incentive now to try and finance in the United States with American dollars so you’re not spending the full total in Canadian dollars at the current rate.

    But this also depends on where you believe the Canadian dollar will settle out. The general sense I’ve had is the Canadian government would like to be at about 85 cents, though I’m often told that this view depends on which side of Canada you happen to be in.

  • rex 9 years ago

    hi jonathan, thanks for being up front.

    reading through the lines, am i to guess that in the past 10 months (since the dollar was on par) that prices of US homes have not slid by 22 %. so its break even then and now ?

    regards Rex

  • Jonathan Dalton 9 years ago

    It depends where you’re looking. In some places in the Phoenix real estate market, values have fallen off by more than that 22% mark due mostly to a large number of foreclosed properties. In other areas, the decline has been far less significant.

    What I had said to many Canadian buyers a year ago is the greater short-term risk was from currency rates. Everything held stable until the beginning of October, when the CAD tumbled from about 92 cents to 79 in the span of a couple of weeks.

    Right now for me, for Canadians looking to purchase, it’s mostly about the exchange rate. (Assuming you’re comfortable with the possibility of values declining a bit further here in some areas.) If you can find a more favorable rate, then it might be worth pulling the trigger.

    Several of my clients found themselves priced out … for some reason, they had the sense the CAD would remain strong as it was for years rather than the narrower window that existed.

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