Impact of currency price fluctuations on housing prices

20 December 2021
Currency fluctuations on housing prices

Recent fluctuations in the dollar exchange rate have had a significant impact on all markets. The high price of the dollar is one of the issues that the general public is involved in. The price of housing also depends on many factors such as the price of iron, the price of construction materials, etc. The price of iron and materials also depends on the price of the dollar and this chain continues. Therefore, currency price fluctuations will have a special effect on the housing market. In this article, I intend to examine the effects of recent currency fluctuations on housing prices.

According to housing market experts, several scenarios of stability, short-term and long-term status can be imagined. Interpreting the stability of the housing situation, they believe that due to the new US sanctions, the central bank’s currency package is inefficient and the two sections of supply and demand will continue to wander in the coming months and will wait a few months to implement their decisions. Due to these fluctuations, most people will stop selling their property or house and will wait for stability in the housing market. Therefore, during this period, the housing market will be in recession.

The relationship between the housing market and the dollar

The foreign exchange market and the housing market are the two markets that have the most competition in investment and profitability. This causes most investors who were interested in buying and selling dollars to flock to the housing market due to the imbalance of this market and make large investments in this market. On the other hand, experts believe that since currency and housing are both economies Assets are considered, the increase in the price of the dollar and the recession in the sale and purchase of dollars will have a direct impact on the market and housing prices. Non-consumer housing market applicants will invest in the foreign exchange market. This will reduce sales and create price fluctuations in the housing market.

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