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It's long overdue: This week I decided to look at Manhattan through the eyes of European buyers (i.e., Irish carpenters) who were buying property in droves a few years ago. Interestingly, the point where the Euro jumped was right about the time that mortgage underwriting standards evaporated (not suggesting foreign buyers were getting mortgages, just interesting timing). After completing this chart, I should have excluded co-ops, but I think the point has been made. It hits the nail on the head so to speak (sorry!).
I charted median sales price (black line) against median sales price adjusted for the difference between the Euro and the US Dollar (red line). The gray columns show the percentage difference between the Euro and the US Dollar at the end of each quarter.
Although the spread remains wide compared to a few years ago, when all those carpenters were active in the market, the European economies are also experiencing various levels of economic distress, thereby dampening demand.
However, the weak dollar and the spread between various currencies remains a compelling economic force for those who can afford to purchase here.
· Manhattan Co-op/Condo Median Sales Price (Euro Conversion) [Miller Samuel]
· Three Cents Worth archive [Curbed]