[quote=EconProf]
As far as Canadians and other foreigners buying here, let’s bring it on. They did not cause our bubble and bust–we did. If prices are now a bargain to them, and their currency is stronger than ours because they did not mismanage their economy, then they deserve to come here and pick up bargains. … the strength of the Canadian dollar is the result. Canadians are big factors in the Phoenix housing market, and I’m not surprised they are also buying in the Palm Springs area.[/quote]
Amen, and well put.
I was bemused by the Canadians rationalizing buying U.S. real estate because “if the Loonie falls, the value of this real estate [relative to me] will go up.”
What if the Loonie continues to rise and U.S. real estate continues to fall? What then, Mr. Canadian, sir?
People always, always, always view a change as an aberration and mentally predict a return to the mean.
Now, a continuing fall in the dollar will support asset prices in the U.S., along with helping our trade deficit. The only teensy weensy problem will be a reduction in our standard of living as cost of imports rise.
