Canadian dollar moves back to .79 US
This article has been updated as of October 22th, 2008 and it is even more relevant as of today with the Canadian dollar trading at .79 US or $1.25 Canadian to buy 1 US greenback
If you ask any professional real estate agent in the Puerto Vallarta area, who carried the market the past year, you will invariably hear that it was the Canadians. Americans stayed home in such numbers that you had a hard time finding one. In one project alone in Bucerias, which was originally aimed for the domestic market I had been informed by a representative of the developer, that 30 to 35 % of the buyers had been Canadians. And why not, the Canadian dollar had risen to a high of 1.07 US back in October 2007 falling steadily back down to par until around April 2008 and below since. Canadians had just experienced one of the biggest run-ups in value of their own real estate holdings back in Canada with no similar fallout like the sub prime fiasco in the US. With that exchange rate, the value was hard to pass up. Now that it is back to a more sobering .95 cent US level, it makes me think that it will not be such a banner year to come, as far as Canadians buyers are concerned. It leaves me wondering who will pick up the slack for 2008. The market has been steadily rising in Puerto Vallarta and all of Mexico for the last several years just as it has the world over. As those of us that have been around through the cycles a few times know, prices do not go up forever. The Canadian market is experiencing at least a 10% adjustment down with possibly more to come. Market forces have a way of balancing themselves out. My prediction: Watch for some steadily growing bargains this year as inventories and carrying costs rise.. stay tuned
Michael Murphy has been an active realtor since 1981 and has business interests in both the Puerto Vallarta - Riviera Nayarit market as well as the Vancouver Island BC market.