Can Fluctuation in Foreign Exchange Rates and Gold be Used to Forecast Real Estate Returns in Greater Vancouver?

This paper is focused on determining a potential relationship between foreign exchange rates and gold versus real estate returns in Greater Vancouver.The initial idea stems from the following: Does a “cheap” Canadian Dollar mean higher investments in real estate? Significant presence of foreign investors in the real estate market has led us to believe that such a relationship exists.We have employed several econometric methods in order to standardize the data, and the Vector Autoregressive Model to determine whether a correlation exists or not.The results of our observations, however, do not show any obvious relationship between the compared data sets, with several exceptions.