Home values have sky rocketed and conversely plummeted over time. The highs and lows of California home prices have averaged out at approximately 7% annual increase over the previous 70+ years. If one wanted to take a conservative approach to future home price increases and use only 5%/year for long term average increase, a $500,000 home today would increase in value to $638,140.78 in 2020, just five years from now. The money one thinks they are saving by waiting for the Canadian and US dollars to equalize in values is lost to the rising cost of the home.
It’s a lose/lose proposition if you don’t buy now. You lose by missing out on owning your dream desert home and you can experience significant financial loss by waiting.
There is a WIN/WIN solution for Canadian home buyers.
The time to buy is now! You get today’s lower home price, today’s lower interest rates, and today’s lower monthly payments. Live in your new home now and pay the loan off when you decide the value of the exchange rate is where you are comfortable.
Foreign National interest rate loans are currently available for either 3 Years @ 4.25%, 5 Years @ 4.375%, 7 Years@ 4.75%. Lower rates are available for the same term periods for dual citizenship buyers. The average US 30 year fixed rate over the past 70 years is over 8%. Rates are anticipated to rise as the US economy improves.