US market saved from cliff-edge disaster

US market saved from cliff-edge disaster

US property market watchers and investors will be very relieved that a last-minute deal has been done on the so-called American "fiscal cliff".

Even the European markets have been jittery as negotiations within the US Senate teetered over the Christmas break, but now controversial tax rises and spending cuts will be blocked.

The effect for the US economy and the rest of the world? The strong US recovery is set to continue, and consumer confidence will not nose-dive, says James Price of the international department of agent Knight Frank.

"This deal really is positive for everyone, and the alternative was just too horrific to contemplate. There will be marginal tax increases for high earners in the US, but the disastrous effect of higher interest rates etc on consumer confidence will be avoided," says Mr Price.

"The US is the biggest single trade partner of the UK, so of course the knock-on effect will be strongly felt in the UK. We are optimistic about business in the US in 2013, and our focus is really two-pronged: new projects in Manhattan, New York; and the Floridian market, cherry-picking the best prospects in Orlando, Palm Beach and Miami."

The latest house-price figures from Orlando show prices that property values there are at a three-year high, suggesting that the Florida property downturn is perhaps now really over.

* Don't miss our our insider's guide to buying successfully in Florida in the new issue of A Place in the Sun, out now.

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A Place In The Sun