Boston’s real estate market can actually benefit from Britain leaving the European Union, according to the Boston Globe.
Despite the current negative effects on the stock markets, the rise in the value of the dollar and other factors are having a positive impact on both residential and commercial real estate in Boston.
In residential real estate mortgage rates are already low and could likely stay that way. This is due to uncertainty within the stock market and economy which in turn pushes down interest rates.
With investors being driven into bonds and rates of bonds falling, this will most likely decrease mortgage interest rates in the upcoming weeks.
This decrease will make it easier for buyers in the Boston housing market, even though it isn’t guaranteed how long it will last. Long-term impact is still questionable.
The increased value of the dollar could also create less foreign competition because it is more expensive for Europeans to buy US real estate.
Within commercial real estate, there is a prediction that foreign capital investment in Boston real estate could accelerate.
Boston is one of the top cities for foreign investors and even though the dollar has become stronger, investors who may have invested in real estate in London will be looking to the US instead.
Predictions show that Boston will continue to be a desirable city to invest in and this will continue to drive prices for the higher profile buildings.
Brexit is still not guaranteed so despite this optimism there is still an uncertainty for the future.Tags: Boston Real Estate, Brexit, Commercial Real Estate, Residential Real Estate