On of my potential buyer from Canada shared with me this morning his fears and thoughts and reasons why he is not “jumping off the fence and buying NOW in Palm Springs”
His argument is that the inventory in Alberta (where he is from) is growing and particularlyin their resort areas “The Rockys”. His concern is now that they have more inventory in their resort area, that would bring more canadians buyers there, their prices will go down…less Canadians will buy here and we are going to see another “DIP”
Here is my answer to him : In the last three years, YES, over 60% of our inventory was purchased by Canadians compared to 20% in all the previous years. The reasons are:
- Canadians love Palm Springs because of its climate in the winter with no rain, sun and golf.
- Conveniently, the Canadian currency came to par with the US Dollar and stayed there until now
- Our prices came down significantly
All of the reasons above, made our resort area most attractive to Canadian buyers from all over Canada. We’ve had clients from as far away as Nova Scotia.
Comparing your resort market to our resort market is not the way to go. Yes! You have a bubble in parts of Canada. Quite a few of our clients buy in Palm Springs because they cannot afford to buy art home. They are still investing but most come here to afford it.
The excess of inventory in your Rockies will NOT affect the Palm Springs market. We are past the bottom. You are free to wait for the next cycle. History has proven that the cycles are about 10 years. You can certainly wait until this happens. Where will your dollar be compared to the US dollar at that time.?
SO!. Do you purchase and enjoy now or continue waiting? Your choice.