Today I’m writing an update to my Status Report on October 17, 2010, when I blogged that the Canadian dollar had climbed until it was above parity to the US dollar. I emphasized the reasons then why it made good sense for Canadians to go ahead and invest in Palm Springs real estate. I’m still tracking the values, and the same reasons I gave almost eight months ago are still true today. The current Loonie value at $1.0218US is still above the $1.011US value of last October 17th. Presently it looks as if the Canadian Dollar will stay at or above parity for the foreseeable future.
The stars are really aligned for Canadians to purchase a Palm Springs winter home here now, while the choice is great and prices are still down. You can find a great house, condo or maybe even a multi-unit rental property where you could claim one unit as your own while renting the others to pay your mortgage. I’ve sold one of these just recently with the buyer doing just that. As to prices – although prices of homes in most price ranges are still under some downward pressure, with inventories falling the prices will eventually stabilize and begin to rise. This might take some time at the low end (up to $200K) where I think most of the foreclosures will continue for some time.
My take away point is that while others wait, hoping to catch a market bottom in prices with a corresponding high in favorable currency translation, many have gone ahead and made their purchases. These buyers are already enjoying their Palm Springs “Place in the Sun”. For others who hope to catch the “right wave” and who anticipate coming back this winter, still without a home of their own here, there’s a risk in waiting and wondering if that bottom has come. Remember – for those who try to “time” their purchases, the only time they’ll see a market bottom or top is when they’re looking in the rear view mirror, when it’s passed them by. So don’t fall into the trap of trying to time the market!