Looking to sell your San Diego home? Get a free home value report
Looking to buy a San Diego home? Click here for full MLS access
When the United Kingdom voted to leave the European Union, everyone was shocked. No one expected Brexit to succeed.
There was immediate fallout in the financial market, especially in the English commercial real estate market. A lot of investors pulled their money out of several large funds. Eventually, the funds were frozen in order to prevent fire sales.
That situation is still playing out, but how does something across the pond affect us here in San Diego?
You’ve probably heard the expression, “Think globally, act locally.” Nothing is more local than real estate, but those fluctuations and the uncertainty in Europe have caused foreign dollars to move into more stable assets, including U.S. real estate.
Right now, we’re seeing a lot of foreign investors buying up real estate or U.S. treasury bonds, one of the most stable investments on earth.
“
”
Since all of that money is coming into the real estate market, interest rates have gone down. The Fed has decided not to change their interest rates as well, which has also helped keep consumer rates low.
U.S. real estate is a stable asset.
”
As of right now, we can expect continued demand for properties, low inventory, and low interest rates despite the uncertainty across the Atlantic. That’s the immediate impact of Brexit on our real estate market.
Interested in learning more on Brexit? Watch our recent show on Channel 4.
If you have any questions, give me a call or send me an email. I would be happy to help you!
