The world is more turbulent than ever with the recent Russian invasion of Ukraine. For example, the National Association of Realtors states the Russia Ukraine economic impact points to potential changes in consumer behavior.
Russia Ukraine Economic Impact on Housing and Economy
Luxury real estate is the first point of concern. For instance, stocks and cryptocurrency used to purchase luxury homes are showing volatility since the conflict. Likewise, this volatility in the stock market can cause apprehension for all home buyers at any price range.
Inflations Impact on Real Estate
As we all experience rising costs of fuel due to the war in Ukraine, we face another potential hit to housing. Further trickling down to food and supply chain resources fueling inflation that is already at a record high.
“Energy prices grew yet again, with total prices jumping 3.5% from January—while the 12-month gains are still an astounding 26%. Gasoline prices rose 6.6% in the month, and are 40% higher than a year ago, while fuel oil rose 7.7% in January alone.” Forbes Advisor
Direct Harm Unlikely
The latest article from the NRA claims direct harm to real estate unlikely from the Russian Ukrainian war. In fact, Russia comprises very little of the overall foreign buyer purchases in the US. Moreover, 41% of Russian foreign buyers who purchased residential property lived abroad, and the majority already lived in the U.S. as visa holders (e.g., for work, as diplomats, students) when they purchased the property.
“Russian buyers comprise less than 1% of foreign buyer purchases in the U.S., and they participate in so few U.S. real estate transactions that it is unlikely they would cause a major disruption in the market. Transactions involving Russian buyers are most common in Florida, Georgia, and New York. But even in Florida, which has the most purchases by Russian buyers, they account for just 0.2% of Florida’s total sales.”
Foreign Buyers of Real Estate
A very interesting chart is provided of the percentage of foreign buyers by the National Association of Realtors. Take a look.
Top Buyers of US property Russia Ukraine Impact
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