Brexit Could Affect US Real Estate

Although the Atlantic Ocean separates the U.S. from the U.K., Britain’s Brexit plan, the country’s scheduled departure from the European Union, is expected to have international consequences that could potentially affect the U.S. housing market. The ramifications include a slowdown in global economic growth that could spill over into the U.S. leading to lower mortgage rates or foreign investors flocking to American real estate. See more details from Trapasso below.

Real estate experts anticipate some international investors will hightail it out of Britain to avoid the economic uncertainty—and head straight for America.

"The uncertainty of a Brexit possibility reinforces the stability of the U.S. [real estate market]," says Liam Bailey, global head of research at Knight Frank, a London-based real estate agency and consultancy.

Brits may find American real estate more appealing as it becomes more onerous and time-consuming to buy in Europe, says Lawrence Yun, chief economist of the National Association of Realtors®.

"The British will have a harder time buying property in Spain, Italy, and other parts of Europe," he says. "They could look to the U.S. as an alternative destination to buy.”