Britain has voted to leave the European Union, a dramatic move which has caused economic disruption in many parts of the world. As a result, it should come as no surprise to learn that it could have an impact on U.S. real estate.
Falls Church, VA -- (ReleaseWire) -- 07/06/2016 --On June 23 of 2016, the British voted on whether Britain should leave the European Union or not, which resulted in 48.1 percent voting for "Remain" and 51.9 percent voting for "Leave." This resulted in an immediate economic convulsion not just for Britain, which suffered a fall in the value of the British pound, but also for other countries, which experienced a roller coaster in their respective stock markets. What's more, it should come as no surprise to learn that what has been called "Brexit" can have other economic consequences as well, one example being its potential impact on U.S. real estate markets.
To understand Brexit's potential impact on U.S. real estate market, it is important to understand what is happening as well as why it is happening. First and foremost, part of the economic convulsions can be attributed to the fact that if Britain can no longer benefit from the free movement of capital, products, services, and people, Britain-based businesses that sell to European countries will suffer. In addition, there remains some uncertainty in the U.K. political world, as British leadership may have second thoughts about the whole matter while there may be other intra-British struggles. Finally, Scotland is rumbling with calls for a second referendum for secession because of its wish to remain in the European Union.
As a result, no one knows what will happen to Britain, which can be even worse than knowing that something bad will happen. After all, people can protect themselves from bad outcomes, common examples being spending less, hedging their investments, and in extreme cases, even moving to other countries. However, they cannot protect themselves an effectively and efficiently when they don't know what they should be expecting. This is why people often react by seeking safe shelter.
There is general consensus that no financial shelter in the world is safer than the United States. This can be seen in how the U.S. dollar has gained in value relative to not just the British pound but also other national currencies. Although it is still too early to tell, it is possible that this trend will manifest as international investors becoming less interested in London real estate in preference for their counterparts in the U.S. centers such as New York, Los Angeles, and Washington, D.C. This shift may well increase U.S. real estate values as demand increases for those particular properties.
Still, U.S. consumers should not let Brexit influence their decision-making too much at the moment because too much remains uncertain. However, one thing that will remain true is that they should secure the assistance of a skilled and experienced realtor such as John Seggerman, who can help them navigate all of the currents underlying their local real estate market with consummate professionalism.
For answers to on many other real estate questions, visit www.johnseggerman.com.