Industry observers attributed this newfound reticence to the declining Canadian dollar, a sharp contrast to the situation back during the financial crisis when buyers from up north came to the U.S. in droves and purchased plenty due to the loonie holding parity with the American dollar.
Among these enterprising buyers were Vancouver couple Brian and Linda Pahl, who purchased a three-bedroom house in La Quinta around two years ago for $450,000.
“With the Canadian dollar being as low as it is, it pays to sell the home and pay the capital gains [tax]. We can buy again in two years,” Brian told HuffPost Business Canada
, adding that the projected sale price for their property is currently sitting at $725,000.
In general, home prices in the region have taken a hit following the winding down of Canadian purchases. Inventory has grown by an estimated 25 per cent in 2015, according to data from the California Desert Association of Realtors.
“Our Canadian buyers are not buying. This was the perfect storm for the desert, and that's why our real estate right now is in a bit of a slump,” Bennion Deville Homes realtor Kelly Trembley said.
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In the wake of the continuous fall in oil prices that has weakened multiple oil-producing economies worldwide, Canadian buyers have started shying away from acquiring homes in Coachella Valley, CA and other similarly scenic spots.