Voters in Britain voted to exit the European Union (EU). This historical event that we'll dub the Great Brexit has led to immediate problems with the country's economy, and has also left many voters regretful of their fateful vote to leave the EU.
Fairfax, VA -- (ReleaseWire) -- 07/18/2016 --As reality sets in for voters, the value of the "pound" has declined, and the stock market plunged, the lowest plunge in over 30 years. The effects and fallout of Britain's decision to leave the EU will be felt globally, but for the U.S. the effects are positive in regards to the real estate market. Foreign buyers are predicted to invest more in the United States as the U.K.'s economy pulls itself back together. With London dubbed as the world economy's center, this problem is viewed by some as a mere stumbling block.
If you've heard about the Brexit and have no idea what it means, this brief definition should shed a little light on the matter. The word itself is a combination of the country's name, Britain, with the word "exit."
While the effects of leaving the EU are economical, the decisions to leave had nothing to do with economics. Voters in favor of leaving wanted more control of immigration and more boarder control. The campaign's slogan was "take control." Perhaps this sounds familiar for U.S. readers.Voters in opposition of leaving forewarned and worried of the economic collapse they would soon face if the country left the EU. It seems that those in opposition were correct. While things look bad at the moment, they're only predicted by economists to get worse before improvement.
London is a long-time real estate competitor of the U.S., particularly the New York City market. London has always been a hot spot for foreign buyers. According to Yahoo Finance, it is estimated that in 2013, about 44% of about three quarters of "newly built central London residences" were purchased by "non-Brits."
With Britain's decision to leave the EU, it is predicted to leave foreign real estate investors hesitant to invest, taking their money elsewhere—particularly to the East Coast of the U.S. The United Kingdom's real estate market is predicted to suffer annual declines by about 5% or more within the next two years.
U.S. Elections Bare Resemblance to the Great Brexit.
While the future looks bright for the U.S., naysayers predict that foreign buyers may hesitate to heavily invest in the U.S. market due to the uncertainty of the upcoming presidential elections. The U.S. campaign to control borders and control immigration bares stark resemblance to what transpired in the U.K. The results of that historical decision likely has the world waiting in anticipation of the fall 2016 presidential campaign in the United States. Regardless, the U.S. market will likely see an increase in its major centers such as New York City, Los Angeles, Miami, etc. but the increase may only be nominal for the aforementioned reasons above. As a realtor, this can be concerning, so talk to a company dedicated to providing realtors with necessary services such as commission advances, Such as Commission Express.
About Commission Express
Commission Express has been working with realtors since its inception in 1992. It is the #1 provider of real estate commisson advance services, meant to help realtors maintain a stable cash flow while waiting for a sale to close. To learn more, visit www.commissionexpress.com.