As you likely heard in what is now commonly referred to as “Brexit”, on June 23rd, 2016 the United Kingdom voted in referendum to leave the European Union. In this business, you deal with nerves all the time. Whether it be a new home owner occasionally second guessing one of the largest financial decisions they will ever make, or a new agent nervous to make a career move, nerves are something you are used to. That being said, when you have investors, homeowners, and your agents and office all suffering from the same nerves, things can get a little hectic!
Although Brexit directly affects those on the other side of the Atlantic Ocean, it is a large change that will have an affect on home buyers, home sellers, and the real estate industry as a whole. Among the many changes we can expect, including an increase in home prices, one area that will see a large change is in the luxury home market.
With a stable housing market for many years, many investors flocked to the United Kingdom where they felt comfortable buying real estate. Now that the housing market is uncertain, they will turn their attention elsewhere, most likely within the United States. This means that demand, and prices, in the hottest markets such as New York, San Francisco, Boston and Seattle will increase, affecting the luxury housing market before all others. When homes in the upper price range of the market are in high demand and prices are continually rising, it will push people to the lower segments of the market, which will in turn increase real estate prices as a whole.
With this information, you can provide your agents with some peace of mind, especially for those who are focused on the luxury home market. If you have agents who have clients looking to sell luxury housing, Brexit will mean a bigger profit for them down in the near future. It will also mean adding training and support for assisting buyers when both prices and demand are high could be a large benefit to the agents in your office.
With 17,000 agents and 1,700 offices throughout Europe, RE/MAX has strong brand visibility to capitalize on the influx of Europeans to the North American market.