Canadian Dollar recent history
The Canadian dollar is dropping fast, and more than one investment bank is predicting it will hit a record low in 2016.
Recently he valued of the Canadian “loonie” dropped below 70 cents U.S. for the first time in 13 years, and experts expected it to drop to 59 cents U.S. by the end of the year. This would be a record low for the loonie, falling below its 2002 trough of just below 62 cents U.S. to the American greenback.
What causes the Canadian dollar to decline?
Over the last six months, the value of the Canadian dollar (loonie) has declined by approximately 12 percent. Simultaneously, the price of oil fell by approximately 48 percent. The positive correlation between the two variables (the Canadian dollar-US dollar exchange rate, and oil prices) is high and has existed for a long time.
That’s not good news for our neighbors to the north (or the U.S. companies that make money exporting to them) who have been suffering the increment in the cost of living, since the country imports about 80% of its fresh produce.
In the real estate sector this represents a limitation for buyers since they are more cautious about expanding their money in moments when the currency has dropped down so low. The Depressed value of the Canadian currency against the US dollar is not only discouraging some Canadians from buying Florida Homes but also encouraging others to sell.
Why is this an opportunity for Canadian Citizens who bought property in the U.S. ?
Inversely this situation represents a great opportunity for Canadian owners of U.S.property to sell. Canadians who bought property in Florida in early 2008, 2011 and 2013 when the Canadian dollar was dancing par or below the US dollar will have a great return in their investment if they decided to sell their homes now. At the current exchange rate the Canadian dollar or loonie is worth approximately 75 cents, and conversely, a U.S. dollar is worth between $1.30 and $1.40 Canadian dollars. This can only mean something: is a great time to sell and net more with the current exchange rate. In Florida this represents a major impact on the Real Estate industry since Canadian have accounted t for seven out of ten international home buyers in recent years.
How can we help?
At Paz Global Real Estate we can help you with the process of selling your home. The process of selling real estate property can be confusing but you need not to be discouraged about making the move to sell in South Florida. Canadians are bombarded with misinformation, yet the process of selling your home in Florida is really easy. At Paz Global Real Estate we are knowledgeable professionals that will help you understand the how you can take advantage of this opportunity and invest by selling your home in times when opportunities are up. You can find more about us at https://pazglobal.com/ or call us at 305 466 2990.
