Posted by Jonathan J. Miller -Wednesday, January 4, 2012, 6:00 AM
[click for interactive chart]
A few months ago I wrote about the strengthening USD and it’s potential to limit real estate demand from foreign buyers, an important component of the Manhattan housing market, especially for new development and also re-sale condos and single family properties.
NYC tourism is at record levels as international consumers continue to take advantage of the favorable exchange rate, however a record pace will be hard to sustain. Brazillians are a growing force, accounting for a half million visitors annually, but that pales in comparison to the overall annual total of 50M.
After the S&P downgrade of US debt last summer, foreign investors flooded to US treasuries as a “flight to safety”. Well the same goes for real estate and there had been a significant surge in Manhattan condo sales in the third quarter of 2011.