Will The Strengthening Dollar Scare Foreign Nationals Away from Santa Barbara and Montecito Real Estate?
Now is a good time to take a trip to Europe if you have US dollars.
The US dollar is not just the strongest it has been against the Euro in years...but the strongest by far. The Euro and other currencies have lost roughly 30% of their buying power just in the last 9 months. With all the uncertainty with politics in such areas as Ukraine, Greece etc., as well as the strengthening of the US economy...this might be a change that stays for the near future...
If so, what does this mean for foreign nationals looking to buy real estate here in the Santa Barbara area?
Over the last several years, in my experience, we have seen numerous international visitors to our area, but not tons of people that turn into international buyers for real estate in our area. Of the international buyers we do see looking at real estate in our area, the 2 predominant countries where they are coming from seem to be Canada and the UK. I myself have worked with 3 international buyers in the last 18 months...all from the UK and Canada. The last was coincidentally right as the US dollar started to strengthen greatly against the Euro and Pound. Now that we have seen such a run up in prices in the last 2-3 years combined with the strong US dollar, it will be interesting to see what happens with foreign buyers in our area. My gut is that we will predominantly see buyers that are only cash and will tend to fall into the higher end price points. Only time will tell...but it will be interesting to see. Further Reading:
- Articles About Foreign Buyers in Our Area
- Luxury Real Estate in Santa Barbara
- Santa Barbara Different Neighborhoods
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