On the Role of International Economic News on Real Estate Value

luigi Wewege Real EstateWhen the news of the United Kingdom’s historic decision to leave the European Union made its way overseas, it was accompanied by reports of economic collapse and widespread fear regarding the sudden financial market volatility. The value of the British Pound plummeted immediately in response to the news, and speculation ran rampant regarding the global ripple effects of the so-called “Brexit.” This is one of the reasons Luigi Wewege so frequently discusses the benefits associated with focusing on the most stable of markets, and the financial services expert’s insight seems to have been validated after seeing so many divergent reports regarding the impact of the recent news out of the United Kingdom.

In one example illustrating the divergence of opinions regarding the potential economic fallout, prominent market experts and analysts have simultaneously declared that the New York real estate market will both benefit from and be harmed by the United Kingdom’s departure from the EU. There are valid reasons for expressing either opinion, as theNew York real estate market may appear to be a much more stable option now that there is such market volatility associated with the United Kingdom. On the other hand, the luxury real estate market is likely to soften by a significant degree considering the current surplus that exists.

Perhaps the reality is that it is simply impossible to predict the long-term economic consequences of this decision, particularly since most of the initial response appears to be caused by the unexpected nature of the outcome rather than the actual outcome itself.

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