The Canadian dollar has been bouncing back in the market lately,which is a very good thing for Mexico’s booming real estate sector,since it means more buyers will decide now is the time to purchase property.
“As real estate professionals,we have been closely watching the Canadian market in recent months,and particularly the Canadian dollar,” shared Richard Houghton of Investment Properties Mexico. “Recent adjustments have caused the Canadian dollar to move back up in relation to the USD,which means that buyers from Canada will be entering the Mexican real estate market with increased confidence,so buyers and renters alike can expect business to increase during the high season.”
Here’s a summary of what’s been going on: After a sharp drop in the value of the Canadian dollar (from a high of .94 cents for every $1 USD last July,to a low of .78 cents this March),the U.S. government made some adjustments to stop the U.S. dollar from continuing to increase,which was actually hindering the U.S. economic recovery. As a result,the Canadian dollar is actually moving back up in relation to the USD in a trend that is expected to continue,and today it is staying strong at around .82 cents for every $1 USD. Not only is this a fantastic sign for Canadian consumers and businesses,but it’s also great news for Mexico’s strong real estate sector,which has been gaining serious ground. Of course,the fact that some parts of Canada are still receiving snow as I type this doesn’t hurt either!
According to a recent article in the Wall Street Journal,Bank of Canada Gov. Stephen Poloz and Bank of Mexico Gov. Agustín Carstens also see a positive ripple effect resulting from recent moves by the U.S. government,In fact,both Mexico and Canada have benefitted from the depreciation of their currencies against the U.S. dollar over the past 12 to 13 months because it cheapens products and labor while also boosting demand for other sectors,such as real estate and a variety of exports.
“Mr. Carstens [also] said he saw demand in the U.S. auto sector,” writes the Wall Street Journal. “U.S. investment in Mexico is picking up. We see a strong foundation for recovery in the U.S.”