The 65 Cent Dollar

13 January 2016
Remax-Condos-Plus

How will the Canadian Dollar affect the Toronto Real Estate Market?

As you recall, last year we predicted a 65 cent Canadian dollar for 2016. Now, a 65 cent dollar is not bad for everyone. In fact, it’s pretty good when it comes to real estate, and particularly for foreign investors. The low dollar makes buying Real Estate today in Canada cheaper than three years ago. What other country can claim that.

What About Canadian Investors?

Where is the best place for Canadians to put their money? Should they put it in the bank, at 0% interest? Or is it better to invest it in the stock market which was down over 13% in the last 12 months? Or, in Toronto real estate, which is up 9% on average over the past year. The answer seems obvious.

What About the Real Estate Bubble?

When you do a little research, there is no bubble in Toronto. There is a real demand from a population growth of over 100,000 people per year moving to the GTA and there is a low supply of listings hitting the market. Not only that, Mortgage arrear numbers are at record lows, no one will be dumping real estate in this market.

In conclusion, for all you investors and home owners, you will experience another year of good price increases in Toronto and you can get the full details of our Real Estate Market Forecast in our blog for 2016.