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b"With Terry Story, 27-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL

Terry Story always has her real estate eye fixed on the local market and, therefore, is tuned into the potential effects Brexit could have in South Florida. \\u201cIn the short term,\\u201d she says, \\u201cthe US could be flooded with investors flocking to the US as a safe haven, putting more demand on real estate, and, of course, that would be a good thing for us.\\u201d \\xa0Also, she adds, interest rates will likely remain low or go down, meaning that mortgage rates will be more attractive to the home buyer. Recently, we saw average home mortgage rates of 3.46%, producing lower monthly payments and giving the buyers greater buying power.\\xa0 \\u201cTo give you an idea what this means,\\u201d says Terry, \\u201cit'll allow the average home buyer to buy 8% more expensive of a house.\\u201d
Home prices have climbed overall in April, with five US cities showing record home values and 20 major markets having double-digit annual increases.\\xa0 The cause here has nothing to do with Brexit, but with shrinking inventory, which was actually created by the pushback from buyers who refuse to consider paying such inflated prices.
One of Terry\\u2019s resources for real estate news, a report called The 8 Critical Trends in Real Estate, predicts that commercial projects will decrease as many insurance companies, bankers, and debt marketers reach allocation limits. To better understand this, Terry explains that, especially with commercial real estate, the big building projects are launched during a healthy economic phase. But since these ventures can take up to or more than two years to complete, the economy could be back to a negative position, where few developers would risk beginning something new.
Based on the shifting demographics of the millennial population growing at about the same rate as that of baby boomers retiring, Terry offers this optimistic prediction: \\u201cThere's going to be continued growth in the multifamily and growth in the boomer-focused housing, offering medical facilities, assisted living facilities.\\u201d
Although Terry often says that all real estate is local, it\\u2019s important to remember that world events from afar can have consequences in our own back yard.
Read The Entire Transcript HereCollapse Transcript
Steve Pomeranz: It's time for Real Estate Roundup.\\xa0 This is the time every single week we get together with noted real estate agent Terry Story. Terry is a 27-year veteran with Coldwell Banker located in sunny Boca Raton, Florida.\\xa0 Welcome back to the show, Terry.
Terry Story: Thanks for having me, Steve.
Steve Pomeranz: The news has been and continues to be is this vote by the British Union to get the heck out of the European Union, and we're wondering what effect might that have on US real estate.
Terry Story: Steve, in the short term, the US could be flooded with investors flocking to the US as a safe haven, putting more demand on real estate, and, of course, that would be a good thing for us.\\xa0 While there's a rise in the dollar, it could hurt US exports.\\xa0 It's also expected to put downward pressure on the long-term mortgage interest rate.\\xa0 It's going to be two-fold. \\xa0One, long-term interest rates; two, investors leaving some of their investments in London, specifically, and moving to the US.
Steve Pomeranz: When you have stress times like these, the big money, institutional money, and pension money has to go somewhere, and if it seeks safety, there's only a limited few areas they can invest in.\\xa0 The most liquid area in the world to invest in for big dollars is US Treasuries, so if there's more demand for those bonds, then prices rise, which means the corresponding interest rates fall, and then if interest rates fall, mortgage rates, which are pegged to treasury rates, will also fall."