The US Dollar and Gatlinburg Real Estate
You might at first glance think that the exchange rate for the US dollar and the value of Smoky Mountain real estate don’t have much in common but you could just be wrong. No one can miss the much discussed fall of our greenback versus foreign currencies like the Euro. By some accounts, the dollar has slipped over 70% in comparison with the Euro currency which became the standard currency on January 1, 2002 for 12 of the 15 members of the European Common Market. Since then, the Euro has become the standard of currency for many types of international commerce as the dollar’s value has continued to drop. Sadly the fall of the US Dollar is not limited to a comparison versus the Euro. In comparison to most all of the major currencies of the world the US Dollar has declined rather dramatically.
With the current exchange rate of the dollar versus many foreign currencies very near the all time lows it is interesting that real estate prices have gone down. If we are able to purchase real estate at attractive prices with cheap dollars we’re really getting a bargain. Think of it this way. In our economy what else of value can you think of that has fallen in value during the past two years? 2008 may well turn out to be the year that many wish they had purchased real estate. In an economy with a fiat currency the ultimate long term result is almost certainly sustained and severe inflation and yet real estate prices are down. While I don’t have a crystal ball I do believe that real estate prices will, along with almost everything else, start going up dramatically in the not too distant future. With interest rates near all time lows it has very rarely been cheaper to borrow funds to invest. Now very well may be the time to invest in Gatlinburg real estate!