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Coal Harbour Market Recap

 

Coal Harbour Market Recap

At the beginning of the summer the Canadian dollar was near par with the U.S. dollar and there were noticeably fewer foreign buyers for luxurious Coal Harbour properties this summer as compared with last.  Seventy-five Coal Harbour properties changed hands between June 1-September 30th, 2008; while 170 Coal Harbour properties were sold in the same period of 2007.   The resale prices/square foot for the most expensive waterfront properties in Coal Harbour remained relatively constant YTD around +$1700/square foot for an ’02 unit of 2240 square feet on a lower floor in One Harbour Green.

Today, the Canadian dollar closed down AGAIN 2.9%  for the week in light of markets anticipating lower demand for Canadian commodities.  One U.S. dollar now buys $1.22 Canadian, meaning a 22% discount on pricing solely on the currency exchange for U.S. buyers.  This continued downward pressure on the Canadian dollar will make Coal Harbour Real Estate very attractive to foreign buyers once again.  While Canadian variable mortgage rates hover around 5%, this global downturn is not punishing homebuyers as the market downturn in the early 1980s did, when mortgage rates soared to 18%.   Sticker prices have remained high in Coal Harbour, but we are seeing sales posted considerably below their asking price as Sellers price with negotiation room in mind.