As one of the most reputable Dallas real estate companies in the area, we thought many prospective homebuyers would be interested to learn how a Brexit could impact U.S. buyers. Britain has now made the decision to leave the European Union, a move referred to as “Brexit.” How might this affect homebuyers?
According to recent reports, a Brexit could result in wealthy foreigners racing to buy American properties. With those who have the financial means to scoop up homes in popular housing markets including Los Angeles, Miami, New York, San Francisco, and even Dallas, where does this leave buyers?
According to Lawrence Yun, Chief Economist at National Association of Realtors®, it could impact young Americans looking at starter homes or first-time buyers the most. Many of the younger population need a mortgage, and competing with foreign buyers who are well-off financially could hinder young buyers in their efforts to find a first-time home.
The good news? While it’s impossible to know for sure, some believe that most of the foreign buyers will be focused on luxury real estate, properties valued at approximately $15 million or more. If this is the case, millennial buyers shouldn’t be too concerned as most are cash-strapped and not in the market for luxury homes.
It’s reported that British buyers likely won’t be looking to snatch up foreign residences due to the issues they’re facing at home, however buyers from China, Canada, and other areas may head for San Francisco, New York, and other popular big cities. This could work to drive home prices up even further, according to some real estate professionals. In the areas where foreign buyers show most interest, local buyers could find themselves competing. In Dallas and North Texas, homes are already selling like hotcakes so we’ll have to see how all of this pans out in the coming weeks and months!
If you’re in the market to purchase a home in Flower Mound, Frisco, Lantana, Highland Village, or other Dallas-area city, the time to buy is now! Don’t miss out on your opportunity; contact the professionals at Team Nelson today.