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Eitan Eldar: “The UK real estate market is going to soar Post-Brexit”

Posted on: 15 Mar, Author: ebrand

The housing prices in the UK have soared and have set a record for the fastest rate of growth. This has all been achieved in just the last month. This is attributed to the boost in confidence and a good perspective on the housing market following the general election.

A 2.3% jump in the average price of new to the market prices have been seen. In 2002 the property website started its house pricing index. This 2.3% jump for this particular time signifies the biggest jump since the tracking began in 2002. The average asking price per property was £306,810. Over the month the market saw almost 65,000 listings.

Ceo & Founder of EEH Ventures has stated that even though England has gone through long and economic turbulence, this new trend of improvement is going to continue. He went on to say. “The UK markets are waking up,” said Eitan Eldar, “This is happening because of the outcome of the elections and because Brexit finally became a reality“.

 Part of the Credit Goes to the Election Outcome

 2019 saw a slow year for the UK housing prices. but this has changed since the turn of the year as prices have been on the rise. A major factor for this has been the General Election victory of Boris Johnson, the new Prime Minister. This has brought a 4.1% rise according to the January housing prices recorded by Halifax.

Expectations for real estate prices are that pricing will continue to increase. A strong indicator of this is the accounts EY producing a 2020 raised forecast of 2.8% from 2% for growth to be realized in the housing market. All of this is as a result of Brexit now becoming a reality.

 “Boris Johnson’s winning of the elections was the first indication in the process of stabilizing the economy”, said Eitan Eldar. “The pro-business conservative party winning in such a landslide gave the markets the badly needed relief”.

Following the Brexit Era

Many factors can affect the housing market, but uncertainty is a major factor that can cause hesitation among home movers. As a result of the last three and a half years of unsettlement over the EU referendum, it created a pent-up demand. This has since dissipated as a result of its settlement. This is giving a strong picture of activity for a robust spring market.

“Uncertainty about Brexit is finally over, and the British economy is expected to fully recover during the next few years “, said Eitan Eldar and added: “As uncertainty about Brexit is being replaced with optimism, we will see a lot more people buying homes and investing in real estate – UK real estate is soaring”.

 Overall the British population is on a bit of a roller coaster with their mix of emotions of anxiety and excitement.  All as a result of the history-making separation of the United Kingdom from the European Union which became official on January 31, 2020. Only time will tell as to what the impact of this happening will have on the Brexit economy. When it comes to market recovery, there is no need to wait to see the recovery as the evidence is already present.

https://www.youtube.com/watch?v=CKJKOsxmfhc?feature=oembed

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10CFDs experts believe that due to weakening dollar rates, the price of goods will soar


The relationship between dollar rates and commodity prices
The connection between the value of the USD and the prices of commodities is usually an inverse relationship. The costs of commodities tend to decline when the USD strengthens against other major currencies, and vice versa.

According to 10CFDs experts, though the correlation isn’t perfect, this is the rule in general. The value of the USD influences the costs of commodities since it is the benchmark pricing mechanism for most commodities.

10CFDs experts further explain that though the dollar tends to be the most stable foreign exchange instrument, commodities are global assets. These assets are traded all over the world. Foreign buyers purchase the U.S. made commodities with Dollars. And when the value of the dollar drops, buyers have more “purchasing power.”

10CFDs experts state that the mechanism goes like this- when the dollar strengthens, it means that commodities become more expensive in other, non-dollar currencies. While this tends to have a negative influence on demand, as one would expect, when the dollar weakens, commodity prices in other currencies drop lower, something which increases demand.

Which commodities are expected to gain worth in 2020?
According to 10CFDs experts, if we’ll focus on the 3rd quarter of 2019, we’ll note that almost all major commodity price indexes fell, led by the energy sector fall, which declined by more than 8%.

Agriculture and metals prices were down 2% each, while trade tensions, combined with weakness in global goods trade, were weighing on commodity demand. On the other hand, precious metal prices gained nearly 12%, which is also a sign of heightened uncertainty.

In line with subdued global growth prospects, most price forecasts have been revised down for 2019, especially energy (-15%). And according to experts at 10CFDs, energy and metals prices are expected to continue to fall in 2020, while agricultural commodity prices should stabilize.

After oil prices dropped by 8%, as worries about slowing global demand outweighed temporary production disruptions is Saudi Arabia, oil prices were expected to average $60/bbl in 2019 and $58/bbl in 2020, going down from $68/bbl in 2018, with concerns about the weak global growth outlook and robust oil production weighing on the market.

On the other hand, 10CFDs states that natural gas consumption continued to grow strongly in late 2019, supporting stable prices into 2020, while coal prices are expected to continue to fall. In contrast to other commodities, precious metals prices rose 13 percent in the 3rd quarter of 2019.

Easing of monetary policy by the U.S. Federal Reserve, heightened global uncertainty, and robust physical demand all supported precious metals prices, pushing the gold-to-copper ratio (a barometer of the health of the global economy) to a 3-year high.

Though as the prices of precious metals are anticipated to continue their upward trend and increase nearly 6 percent in 2020, following an expected gain of 8 percent in 2019, a stronger-than-expected U.S. dollar could still push prices lower.

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