Good news for anyone looking to buy in North America or the Caribbean: the pound has recovered some significant ground against the dollar in recent weeks, making property on the other side of the Atlantic a more realistic prospect once again. From dropping below the $1.40 mark in January and then in April, sterling has climbed back safely above the $1.60 mark, even touching $1.70 on a couple of recent occasions. It's not back to the dizzy heights of the $2 pound witnessed as recently as last July, but that may come to be seen as an aberration – a window of opportunity that surfaced when prices were at their peak.
For those buying in the US, the pound's lower value against the dollar is easily outweighed by the fall in prices in key markets such as Florida. The British Homes Group, an agency specialising in the Kissimee area of Florida, estimates that prices are just 51 per cent of their level in 2005. Lee Weaver, of the Orlando-based British Homes Group, said: "Both enquiries and sales are up. These are clear indicators that the market is recovering. While the national housing bust has devastated property values, it has also created some outstanding bargain opportunities for property investors if you know where to look."
In the Caribbean, meanwhile, prices are down but not so heavily. Georgina Richards of Knight Frank says: "Barbados is our biggest market and prices there have fallen about 10 to 15 per cent. During the last season, sales were down to a fraction of their normal level and the problem was not just the credit crunch, but the pound falling against the dollar. This season is looking a lot more hopeful, as prices are down, people are less wary of buying now, and they have got used to the fact that it is not $2 to the pound."
Alexander Garrett is a freelance property writer who contributes regularly to The Observer and British Airways' Business Life.