Cold snaps on US residential property market

Residential real estate in some markets of US has faced a drastic slowdown in prices during the last year. Starting from the beginning of the year the prices has been falling spirally to the lowest recession levels. If we talk about glass towers on Manhattan, here prices here fell by 14% last quarter and now stem from $5000 per sq. foot. The same goes for South Florida and California.

The reason for this unexpected downturn in market pattern may occur a “mixed bag” of foreign buyers, new anti-corruption laws, market saturation and stability concerns inside and outside of the USA.

For instance, the number of foreign buyers has slumped by 31%, compared to the same period last year. The source of a stable cash flow were mainly Europe, and different parts of South America. Strong US dollar hampers foreign investments inside the country, because property becomes more expensive in money terms for foreigners. Lukewarm trade war with China also offers little room for optimism among potential buyers. Anti-money laundering act also adds fuel to the flames, driving away buyers with “questionable money” to other places.

As for now, we can only state that many property objects, that once being bought like hot cakes now stand empty.