Feldstein: NYC housing market “priced in euros and pesos”

June 11, 2008

feldstein.jpg  Asked if weakness in the New York real estate market — which has been fairly resilient so far — could signal a bottom for the battered U.S. housing market, the head of the influential National Bureau of Economic Research said : 

 “No, no no! The New York real estate market is priced in euros and pesos,” Martin Feldstein said,  referring to overseas investors snapping up property in the Big Apple which for them works out as a relative bargain because of the weak dollar.

A better indicator to determine whether the worst is over,  he added, would be house prices starting to rise nationwide.  Feldstein was speaking at the Reuters Investment Outlook Summit in New York.

 To hear what he had to say, please click here


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So, if the dollar strengthens can we assume NYC real estate drops? Wouldn’t foreign investors have an incentive to sell NYC properties?

Posted by ATHELSTAN | Report as abusive

Perhaps this foreign acquisition of US property at firesale prices is, like unchecked immigration, a facet of the plan to dilute the power of the average US citizenry.

Posted by Buck in NC | Report as abusive