Wild swings in the U.S. stock market over the past few weeks have prompted many high-end house hunters to rethink their purchases
By Nancy Keates | The Wall Street Journal
Summer is over, but luxury real-estate brokers are still sweating.
Wild swings in the U.S. stock market over the past few weeks have prompted many high-end home buyers across the country to rethink selling off assets to finance down payments, leading to canceled purchases, delayed closings and requests for price reductions.
At the same time, the unstable equities markets have made real estate more attractive to global investors who see the U.S. as a safe haven in the face of economic and political unrest overseas.
Amid the financial uncertainty is speculation that the Federal Reserve will raise interest rates before the end of the year, increasing the cost of mortgage borrowing.
“It’s been a stressful few weeks. The moment the U.S. stock market has one little blip, everyone says, ‘Oh, my god, the world is falling apart,’” says Ryan Serhant, a broker with high-end agency Nest Seekers International in New York. Mr. Serhant reports his firm lost about six buyers in the $5 million range because of the current economic turbulence.
