The Euro has dropped from its $ 1.46 average to closer to $ 1.36, certainly a result of the ongoing financial turmoil in Greece, Italy, Spain and even France. European buyers have been a small but strong component of the Manhattan market in the past few years…..will this change now?
In my opinion, I don’t think so, at least not for the next few months. The fear of the Euro dropping further (which is highly plausible) combined with many European countries increasing focus on going after the wealthy for tax dollars should fuel this segment of the market for at least the next few months: Surely if you lived in Italy and felt the Euro would drop further you’d want to park your money in a ‘safe haven’……and yes, the USA, especially Manhattan. is still considered that in many circles.
I just finished reading the updated edition of AFTERSHOCK the horrific doomsday book that details the slow but certain collapse of the entire world’s economies based on the theory that EVERYTHING is and was indeed a bubble that started inflating many years ago. Regarding real estate, the book does endorse real estate ownership especially if you can capitalize on a long term fixed rate mortgage, and the property is your primary residence…. The next two years is when they predict the unravelling of the entire world financial system fueled mostly by rampant inflation. This combined with Harold Camping’s predictions of the imminent end of the world certainly make for a great mood-booster entering the Fall season….