If you think of Palm Springs as the entire desert area, you are right. Palm Springs is the first city you come to and the oldest, but Rancho Mirage, Indian Wells, La Quinta, and Palm Desert are larger and much newer cities.
Whoops, I got sidetracked. I was going with this because some cities, like Rancho Mirage and Palm Desert, have bigger homes and more snowbirds. Florida gets a lot of its snowbirds from the East Coast and parts of Eastern Canada, and Palm Springs and Phoenix get a very large percentage of their snowbirds from Canada.
And it is beginning to show. In Rancho Mirage and Palm Desert, prices are falling as Canadians sell and leave. Many full-time or California residents here note that the Canadians are leaving because of Trump. That is a bit too simple. American attitudes are bugging them, but the exchange rate is even more critical. The Canadian dollar usually hovers at CD$1.25 to CD$1.32 to the US$ $1.
But exchange rates have decreased a lot this year. Now it is CD$ 1.45 to the US $1.
A house they purchased 5 years ago in Palm Springs for $500,000 cost the Canadians CD$ 625,000.
If they sell that same house for $500,000 now, they get back CD$ 725,000. And that does not include any house price appreciation even though there has been a lot. It is the perfect time to cash out. Combined with American political attitudes, it is a great time to sell.
We have pissed off the Canadians. Do you know how hard that is to do? They are the nicest people in the world.
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