Brexit’s Far Reaching Impact on U.S. Housing Market

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Brexit’s Far Reaching Impact on U.S. Housing Market About Author: Seth Welborn March 15, 2019 1,479 Views Home / Daily Dose / Brexit’s Far Reaching Impact on U.S. Housing Market Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Previous: An Automated Approach to Loss Mitigation Next: Rent Growth Hits 10-Month High Subscribe Sign up for DS News Daily Following Wednesday’s vote in the U.K. Parliament to postpone the March 29 departure date, the Brexit process is likely to drag on even longer. Despite Brexit taking place across the ocean, how will the process impact the housing market in the U.S.?“A no-deal Brexit would probably hurt U.S. home sales in 2019,” says Chief Economist Danielle Hale of realtor.com. “The slowdown in global economic growth centered in the U.K. and Europe would likely cause the U.S. economy to soften. That would lead to lower job growth and less income growth. Both are really important drivers for people looking to buy homes.”According to realtor.com, Brexit could lead to lower mortgage rates for U.S. homebuyers. Instability in the U.K. may lead to British investors moving to safer investments such as U.S. Treasury Bonds, pushing rates down.”We definitely saw the housing market slow when mortgage rates got close to 5% at the end of 2018,” says Hale. “If Brexit does hold mortgage rates down, it could help power some additional home sales this spring.”Additionally, sellers may find British real estate investors looking to buy in the U.S. to avoid instability, especially among luxury real estate.”The British will have a harder time buying property in Spain, Italy, and other parts of Europe,” says Lawrence Yun, Chief Economist of the National Association of Realtors. “They could look to the U.S. as an alternative destination to buy.””Many folks who have been based in London over the last 20 or 30 years are shifting their interests into the United States,” says attorney Edward Mermelstein of the New York City-based One and Only Holdings. His foreign investor clients have been buying up apartment buildings in and around New York City over the past six months as a result of Brexit.”When they’re selling in London, they’re buying in New York,” he says.Worst case scenario, though, is Brexit leads to an economic recession in Britain and in the E.U.“It could have a negative ripple effect to the U.S.,” says Yun.Find more at Realtor.com. The Best Markets For Residential Property Investors 2 days ago  Print This Postcenter_img Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Brexit Interest Investments mortgage Rates Realtor.com Brexit Interest Investments mortgage Rates Realtor.com 2019-03-15 Seth Welborn Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Share Save in Daily Dose, Featured, Government, Investment, Journal, Market Studies, News Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days agolast_img read more