Sep 22 2007

A dollar a day and a housing boom to stay

Everybody and his blog is shouting from the rooftops about the Canadian dollar’s rise to parity with the US greenback.

Frankly, I’m not all that convinced that this is a good thing, particularly for people like me that rely on foreign clients for part of my income. If our currency goes much higher, our international friends are going to go elsewhere.

But I’ve also been hearing a lot from people who are concerned that Canadians are going to undergo the same housing slump that has hit the US. I don’t see it happening, though. In particular, the housing market right here in Vancouver seems set for even more insane prices.

Oh, the housing cycle will eventually take us down. But international investors looking to park their money somewhere are probably going to keep propping up our local housing prices for a little while longer. They won’t want to put their money into the radioactive market to our south, at least until the worst of the fallout subsides. Besides, the Olympics aren’t even here yet.

Patience, first-time home buyers. The time is not yet ripe. But soon…

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