what will happen to USA real estate if us dollor collapses?

Question

I know if interst rate goes up the real estate goes down. Is it possible that dollor goes lower against all currencies and interst rate remains low. I think lower dollor will bring inflation, and interst rate will go up, but that's not happening

Answer 1

If the dollar's value is reduced compared to other currencies, then their money would be worth more here, so they'd have a greater buying power. I would say that could boost the market.

Answer 2

Interest rates have little to do with real estate values. Homes generally appreciate in value regardless of what the dollar does or what interest rates do. What could happen is that foreign investors may pull their $$$ from US funds - this would be bad since the US economy fuels the globe and a run by foreign investors out of the US could cause a global depression as the dollar loses value and Americans stop purchasing goods from other countries (due to the dollar having less purchase power); furthermore the investors could trigger a backlash against US bonds where more is being cashed in (pay back on those bonds) and less being taken out (liquid $$$ for the gov't to use) and, and, and...I digress....

When rates go up, the affordablity of homes goes down so less people are in the market. However the value of those homes remains solid (in most markets). I am certain the federal reserve has a good idea of how to keep the housing market from tanking. They do not directly affect 1st mortgages (too much), but they can implement other monetary policies that will - in a round about way - affect mortgage rates. Keeping rates low will keep people interested in buying homes.

Answer 3

A lower dollar does make imported goods more expensive in the US, but this is partly offset by increased profits for businesses that export US goods overseas where they become cheaper in the foreign markets. Our balance of payments is in pretty rough shape but the US economy is SO huge that we still see benefit from a low dollar relative to may foreign currencies.

A lower dollar also increases foreign investment in the US in all markets including real estate. When buyers are buying, values tend to increase or remain relatively stable or at least not slide so much. This has probably tempered the drop in real estate values in some parts of the country at lease somewhat. Additionally, although there are some parts of the country that are experiencing a decline in the real estate markets, that is NOT nation-wide. Some areas are still robust with increasing values and brisk sales. Taken as a whole, the US real estate market is still pretty healthy. Mortgate interest rates are still very reasonable even though they have risen somewhat in the past year.

Even though the dollar has slid quite a bit in the past 2 years, the cost of many foreign goods have also dropped due to increased production efficiencies, often enough to offset the drop in the dollar and thereby limit any inflationary trend that would otherwise be attributable to the increased US cost of foreign goods. If you've priced any consumer electronics in the US lately you'll see that prices have dropped dramatically in the past several years and are continuing to drop even today.

Answer 4

there can't be any long-term result. The slowdown in sales and the drop in expenses will possibly worsen for a mutually as yet I assume it to start convalescing in 2 years or so. the priority we've is by using an over-inflated industry for properties as a results of common credit. it quite is stopped. we can see greater foreclosure for a mutually as mutually as the low expenses on the subprime loans initiate increasing, yet which will point off after a mutually as. The long-term actuality is that the inhabitants is increasing, so there'll continuously be a great industry for residences. all the recent people would desire to stay someplace. in short, the slowdown in genuine belongings is a blip led to via sloppy lending practices and sloppy government regulation. the two are slowly being corrected. i would be a lot greater inquisitive with regard to the end results of intense capability expenses on the financial gadget than with the genuine belongings industry.

Answer 5

That is not going to change anything. The market is a bubble now and will pop soon, and people are going to wonder what hit them, unless they prepared.

Answer 6

Americans will have more Indian and Chinese neighbours