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by Retric
3708 days ago
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I encourage you to look at an actual graph of housing prices and foreign exchange rates. They really don't track each other. Short and long term there are different and very complex with multiple feedback loops. Also, most people have home loans and houses are not currency. Further, having your currency appreciate is bad for many parts of the economy. Sure, long term there are impacts especially with foreign investors. But it's also vary local with Las Vegas housing market tracking different things than rural Minnesota. Even as interest rates have long term impacts. |
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I'd be very interested to see such a graph. I'd also be interested to know what you mean by foreign exchange rates (I've been assuming you're talking about USD relative to all other currencies). [0] seems to indicate that FX rates affect real estate prices.
> Also, most people have home loans and houses are not currency.
I really struggle to see how that's relevant in the slightest. No one claimed that houses are currency.
> Further, having your currency appreciate is bad for many parts of the economy.
That supports the notion that FX fluctuations will affect real estate prices. A region with worse economic prospects will likely have less demand for housing than an otherwise identical area with better economic prospects.
[0] http://www.investopedia.com/articles/forex/053115/understand...