The global economic and political disruption of Russia’s invasion of Ukraine is becoming clearer every day. And many American families are asking how it will affect the standard of living and their personal wealth strategy.
We all know that gas prices have jumped but what of property values? After all, your home is likely to be one of your biggest, if not your biggest, financial asset.
The National Association of Realtors (NAR) has had a look at this question. It has expressed confidence that the current strength of the property market is unlikely to be affected unless the situation in Europe severely escalates.
Its analysis and confidence are especially important for those selling property or in the market seeking to purchase a new home.
America has just experienced an amazing 2021 when home value rose almost 20% on average across the country.
The bottom line is that property in America is driven by domestic demand. NAR says that foreigners make only 2% of all purchases and less than 1% are Russian.
The states where Russian buyers are prevalent are New York, Florida, and Georgia. Interestingly, 41% of these buyers lived abroad.
NAR observes that the absence of Russian buyers due to the Ukraine conflict could help the market, making more properties available in markets where under supply has been a real problem and pushed prices out of the reach of many American families.
Some offshore Russian owners may also have difficulty making their condo fee payments if they had intended to send money from Russia. That’s because of the financial restrictions that have been placed on the country.
image courtesy of veni markovski