Everyone has spent the last few days pondering the many facets of the Brexit vote, and I’ve been asked by more than a few people what it might mean for our local real estate market.
The short answer is: It’s too soon to tell.
The most immediate effects of the vote will be continued low interest rates; the Fed will most likely hold off on raising rates due to this latest development. I spoke with a few different lenders late last week who were excited to tell their clients and real estate agent colleagues about the plummeting interest rates after the vote. (Rates actually moved a full eighth of a point in a single day, which has only happened nine times in the past decade, as per my colleague Mike Koran at Primary Residential Mortgage.)
We’ll have to contend with a volatile stock market, which could affect how much buyers pay for properties. I’ve been selling real estate for 14 years, and have learned that uncertainty tends to put the brakes on spending large sums of money.
The United States’ economic fundamentals should remain solid in the face of the Brexit outcome, with job growth continuing. I’m anticipating a steady market in the near term for San Francisco real estate.