Ellicottville Real Estate and the Canadian Dollar
The Ellicottville Real Estate market is a haven for Canadians on the lookout for a ski chalet at an affordable price. Approximately one third of Ellicottville homes are owned by Canadians. So it follows that the Ellicottville Real Estate market is affected by the strength or weakness of the Canadian dollar.
The Canadian Dollar vs the US Dollar
For the last 5 years, the exchange rate has been extremely stable. It has remained in a range around the .75 mark. This is shown in the chart below.
A graph showing the Canadian Dollar vs the US dollar (Source: xe.com)
What that means for Ellicottville Real Estate in that time is that there has been no better or worse time to buy.
The Outlook for the Canadian Dollar
For the last 5 years, the Canadian dollar has traded in a pretty narrow range close to .75. Will that change?
Here is longforecasts.com’s outlook:
| Month | Open | Low-High | Close | Mo,% | Total,% |
| 2019 | |||||
| Sep | 0.751 | 0.742-0.765 | 0.754 | 0.4% | 0.4% |
| Oct | 0.754 | 0.742-0.765 | 0.753 | -0.1% | 0.2% |
| Nov | 0.753 | 0.735-0.758 | 0.746 | -0.9% | -0.7% |
| Dec | 0.746 | 0.729-0.751 | 0.740 | -0.8% | -1.5% |
| 2020 | |||||
| Jan | 0.740 | 0.740-0.775 | 0.763 | 3.1% | 1.6% |
| Feb | 0.763 | 0.746-0.769 | 0.757 | -0.8% | 0.8% |
| Mar | 0.757 | 0.742-0.765 | 0.754 | -0.4% | 0.4% |
| Apr | 0.754 | 0.733-0.755 | 0.744 | -1.3% | -1.0% |
| May | 0.744 | 0.731-0.753 | 0.742 | -0.3% | -1.2% |
| Jun | 0.742 | 0.740-0.762 | 0.751 | 1.2% | -0.0% |
| Jul | 0.751 | 0.733-0.755 | 0.743 | -1.1% | -1.1% |
| Aug | 0.743 | 0.716-0.743 | 0.727 | -2.2% | -3.2% |
| Sep | 0.727 | 0.726-0.747 | 0.736 | 1.2% | -2.0% |
| Oct | 0.736 | 0.725-0.746 | 0.735 | -0.1% | -2.2% |
| Nov | 0.735 | 0.732-0.754 | 0.742 | 1.0% | -1.2% |
| Dec | 0.742 | 0.722-0.743 | 0.732 | -1.3% | -2.6% |
| 2021 | |||||
| Jan | 0.732 | 0.714-0.736 | 0.725 | -1.0% | -3.5% |
| Feb | 0.725 | 0.717-0.740 | 0.728 | 0.4% | -3.1% |
| Mar | 0.728 | 0.714-0.736 | 0.725 | -0.4% | -3.5% |
| Apr | 0.725 | 0.693-0.725 | 0.704 | -2.9% | -6.3% |
| May | 0.704 | 0.704-0.730 | 0.719 | 2.1% | -4.3% |
| Jun | 0.719 | 0.719-0.748 | 0.737 | 2.5% | -1.9% |
| Jul | 0.737 | 0.726-0.748 | 0.737 | 0.0% | -1.9% |
| Aug | 0.737 | 0.705-0.737 | 0.715 | -3.0% | -4.8% |
| Sep | 0.715 | 0.706-0.727 | 0.716 | 0.1% | -4.7% |
| Month | Open | Low-High | Close | Mo,% | Total,% |
| 2021 Continuation | |||||
| Oct | 0.716 | 0.706-0.727 | 0.716 | 0.0% | -4.7% |
| Nov | 0.716 | 0.716-0.750 | 0.739 | 3.2% | -1.6% |
| Dec | 0.739 | 0.739-0.773 | 0.762 | 3.1% | 1.4% |
| 2022 | |||||
| Jan | 0.762 | 0.759-0.782 | 0.770 | 1.0% | 2.5% |
| Feb | 0.770 | 0.741-0.770 | 0.752 | -2.3% | 0.1% |
| Mar | 0.752 | 0.740-0.763 | 0.751 | -0.1% | -0.0% |
| Apr | 0.751 | 0.725-0.751 | 0.735 | -2.1% | -2.2% |
| May | 0.735 | 0.735-0.770 | 0.758 | 3.1% | 0.9% |
| Jun | 0.758 | 0.747-0.770 | 0.758 | 0.0% | 0.9% |
| Jul | 0.758 | 0.746-0.769 | 0.757 | -0.1% | 0.8% |
| Aug | 0.757 | 0.730-0.757 | 0.741 | -2.1% | -1.4% |
| Sep | 0.741 | 0.729-0.751 | 0.740 | -0.1% | -1.5% |
| Oct | 0.740 | 0.725-0.747 | 0.736 | -0.5% | -2.0% |
| Nov | 0.736 | 0.719-0.741 | 0.730 | -0.8% | -2.8% |
| Dec | 0.730 | 0.729-0.751 | 0.740 | 1.4% | -1.5% |
| 2023 | |||||
| Jan | 0.740 | 0.707-0.740 | 0.718 | -3.0% | -4.4% |
| Feb | 0.718 | 0.718-0.751 | 0.740 | 3.1% | -1.5% |
| Mar | 0.740 | 0.740-0.775 | 0.763 | 3.1% | 1.6% |
| Apr | 0.763 | 0.763-0.799 | 0.787 | 3.1% | 4.7% |
| May | 0.787 | 0.768-0.791 | 0.779 | -1.0% | 3.7% |
| Jun | 0.779 | 0.746-0.779 | 0.757 | -2.8% | 0.8% |
| Jul | 0.757 | 0.730-0.757 | 0.741 | -2.1% | -1.4% |
| Aug | 0.741 | 0.741-0.766 | 0.754 | 1.8% | 0.4% |
| Sep | 0.754 | 0.733-0.755 | 0.744 | -1.3% | -1.0% |
| Oct | 0.744 | 0.730-0.752 | 0.741 | -0.4% | -1.4% |
The Outlook Is?
Longforecast.com predicts that the Canadian dollar will finish 2023 at .744. That is almost identical to where we are at right now. If this happens, the Canadian dollar will have remained almost static against the US dollar for almost 10 years. Now, if we could know that for sure, we would all be billionaires!
What Does This Mean?
If true, it means that you shouldn’t worry too much about the currency when deciding whether to buy. Instead, focus on the important things. How much will you use your Ellicottville ski chalet or cottage? How much rental income will you generate from you Ellicottville ski chalet or cottage? If the answer to all of those questions is “a lot”, you are probably making a good decision!
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