British EU

[Eric Calabrese]

Any thoughts on how the brexit will effect the real estate market in the U.S?

[Nick Hedberg]

@Heather Skowronsky - Thanks for the shout out and I think your comment "Bexit has the potential to crumble the entire EU" is right on.

“In the short run, the market is a voting machine but in the long run, it is a weighing machine.” - Benjamin Graham

We are seeing volatility in the markets because people dislike fear and uncertainty.  They are voting against the change in status quo. The long term impact of Brexit on world GDP will be relatively small, but the real impact is the consequences of contagion as @Heather Skowronsky and @Sharad M. have discussed. 

We have had a 7 year market bull run (graph below).  Markets are cyclical and US stocks have been getting expensive, despite the soft economy.  Real Estate has been rising for 7+ years and many markets are hot. @Heather Skowronsky just sold a property of mine in Northern Virginia in 5 days at list price for 40% more then I bought it in 2009.  If Brexit causes a European recession it will impact the world. China has been experiencing tremendous pain and many of China's rust belt sectors are already in recession. Many emerging markets have been struggling and the middle east and oil countries have been punished by low oil prices.  The world economy just needs the right trigger to cause another recession and Brexit could be that trigger.  Only time will tell.