The U.S. to Canadian Dollar exchange rate has had a relentless up-trend over the past year. Five years ago the U.S. Dollar was about equal in value to the Canadian Dollar, but these days the Canadian currency has dropped to $0.69 against the US Dollar. Some experts say it may dive even deeper. This is bad news for Canadians, but Americans see some benefits.
It is now much cheaper for Americans to shop north of the border. Canadian businesses in border cities are seeing an increase in the influx of American shoppers. And the cheaper prices are not only seen in goods and services, but also in real estate. Aside from the much-publicized influx of Chinese investors buying million-dollar properties in Vancouver, we may soon see a noticeable rise in the number of Americans snatching up Canadian properties.
American investors who follow the currency markets are being enticed by the low Canadian Dollar to purchase vacation homes in Canada at bargain prices. Not that Canadian real estate is a bargain per se (have you seen the skyrocketing prices in Toronto and Vancouver?)… But at today’s exchange rates, Americans can get some good deals on Canadian property.
As of December 2015:
- Average home price in Ottawa: $387,000 CAD = $268,000 USD (Americans would need to hand over almost twice as much –$510,000 USD — to buy an average-priced home in the U.S. capital)
- Average home price in Toronto: $622,000 CAD = $429,000 USD (To buy an average-priced home in New York City, Americans have to come up with an amount well in excess of $1,000,000 USD)
- Average home price in Vancouver: $743,000 CAD = $512,000 USD (To compare, San Francisco is pretty much out of reach for the average American, with the average home price passing $1,100,000 USD)
The bottom line is that, at this exchange rate, Americans are getting a good 31% discount on property bought in Canada, including vacation homes in popular Canadian destinations, such as these:
Scenic Niagara Falls, Ontario is a popular location for U.S. buyers purchasing vacation homes. A charming 4-bedroom home listed for $207,900 CAD translates into only $143,451 USD for an American buyer.
Whether for a summer vacation or a ski getaway, there are plenty of memorable vacation spots in Canada for Americans, especially when they can be enjoyed for less.