While the fence sitters in the U.S. may get away with “waiting for bottom” a few months longer, the Brits won’t have that luxury as the dollar is beginning to strengthen again.
From the point of view of much of the world, Florida has been “on sale” for a year or so now. And for the U.K. market, cheap prices, combined with a strong pound have made buying in central Florida a “no brainer.”
But as I’ve explained to my U.K. buyers, waiting around isn’t an option because the “perfect storm” won’t last forever and as we’ve discussed before, those that wait around for “bottom” invariably miss it and show up late to the party.
What’s most likely to affect the the success of a U.K. / U.S. transaction – hoping for an extra $10k off the price – or getting two dollars to the pound vs. only one point five. I’ll let you do the math, but with a sixteen point loss against the pound in just the last couple of weeks, I wouldn’t play around with that calculator for too long because the tide is rising against the pound. Predictions are that this perfect storm is likely to fizzle out by the end of 2008.
There may be a slight rebound before then however, and if you’re in the market for a second home or vacation property in Orlando, you should be ready to make your move in the next month or two as U.S. home sales are also beginning to rise again. Former Federal Reserve Chair Alan Greenspan in an interview with the Wall Street Journal this week says he expects U.S. home prices to stabilize in the first half of 2009.
At Condo Metropolis we have links with some of the key players in the currency hedging arena, so if you want to lock in the best rates before they go any lower, contact us for an immediate free consultation.