Canadian dollar under pressure
The loonie is at a low against the US dollar, dipping by margins last seen during the financial crisis and analysts predict that will continue well into 2015. The loonie will be under increased pressure in the New Year as economic conditions make an early rise in interest rates unlikely; a growing number of experts are predicting that 2016 will be the first increase by the Bank of Canada. For the real estate market a weaker Canadian dollar may reduce interest in purchasing recreational homes south of the border while making the housing market here more affordable for foreign buyers. For the wider economy of course it should increase exports which is a central part of the Bank of Canada’s ideal scenario for a stronger economy.