The economic problems overseas are hitting the U.S. luxury housing market and causing a slowdown in sales, says Bloomberg's Prashant Gopal in this video from Bloomberg. Foreign investors have been purchasing less property in U.S. markets such as California, New York City, and Miami, where the luxury market has been consistently strong.
Volatility in the stock market seems to be tied closely to the luxury home buyer market says Gopal, and the strengthening of the American dollar impacts the ability of foreign buyers to purchase U.S. properties. Oil prices are also impacting not only foreign buyers but domestic ones as well in Texas markets, causing a slowdown in home building. In Houston, luxury market sales are down 17%.
"The stock market is a pretty good barometer, but there are many more issues going on around the world," he says.