No matter who won the 2016 presidential election, economic changes were bound to occur. The housing market is no exception. With Donald Trump as the current president-elect, the citizens of the United States have many questions about the economy. Whether you are thinking about buying in the future or you currently work as a real estate agent, you may want to begin paying attention to market trends related to the future presidency.
Overall Expectations for the Economy
Many economists expect that we will see a short economical boost in the first part of the upcoming year, thanks to tax cuts and upgrades to the country’s infrastructure. As the consumers grow more confident in the economy, they are more likely to look toward purchasing a new home. There are two directions the economy can go as trade changes. If taxes are raised on goods coming into the country, it is possible that we will see fewer of them. This has the potential to lead back to recession. Only time can tell what is going to happen, but expectations are all over the place at the moment.
An Up and Down Stock Market
Economists warn of a fluctuation in the stock market. With little stability in the market, investments may linger under the hands of corporate figureheads. On a smaller level, individuals may hold tighter to their own investments — their homes. You may see less inventory at the office because people are reluctant to let go of a “sure thing.” You may see this begin to change in the second half of the four-year term.
The Significance of Confidence
When Americans are confident in their country’s economy, they are more likely to make larger purchases. This means the trade deficit may increase and stresses about financial well-being may decrease. Confidence in the economy may vary from state to state and even county to county based on red and blue affiliation. This means you could see a slowdown in home sales in democratic states and a boost in home sales in those states that voted republican.
Clearly, confidence will vary from region to region. This means that as a real estate salesperson or broker, you need to pay close attention to your area’s political affiliation. Local trends may reflect the affiliation, so you may want to learn whether you need to cater to buyers or sellers for the moment.
Changes in Home Mortgages
Normal lending will be much more common in the future, according to some economists. The only case in which lenders may back away from the real estate industry is in the event that the new president creates a negative atmosphere surrounding mortgages. A highly litigious atmosphere is not advantageous for buyers or sellers. The nature of mortgage lending and the legal environment in the United States are still unsettled at this time. Again, this is something that we will not necessarily understand until Donald Trump takes office and the new policies begin to unfold.
Natural Disaster Relief
Depending on the new president’s stance on providing financial assistance for areas experiencing natural disasters, buyers may think twice about purchasing a home in certain zones. Federal programs currently provide relief for homeowners experiencing losses due to earthquakes, fires, flooding, and hurricanes. With Donald Trump in office, is this going to continue? Until events like this begin to occur during his presidency, potential buyers may avoid areas prone to natural disasters and terrible storms.
Benefits for Luxury Properties
With a dollar that is weakened, international investors may look to the United States. Many people consider a Trump presidency to prevent some sort of wild card rather than stability. Additionally, foreign buyers are concerned that they may not be able to enter the United States or reside in the homes they buy. Luxury property buyers are especially concerned in Florida, where foreign buyers are frequently looking at condominium towers.
With fewer immigrants and visitors from other countries coming in, condominium and luxury home sales may change. You may notice less sales and rentals if you live in an area like Miami or Los Angeles. On the other hand, you may find yourself with more inventory if those who say they want to leave the country do.
If the Trump administration follows through on its tax incentive promises, the benefits will be best for residents of the United States. This could lead those from other countries to reconsider the initial choice to purchase a home in the United States.
Of course, it is much too early to make a complete judgment call. Things could go very well for the real estate market, or we could see some steep changes. Real estate moguls may even be surprised to find that nothing changes. There is not much telling what is going to happen, and all we can do is make predictions based on what the president-elect has told us of his plans. The follow-through will tell us much more beginning in January.
No matter the circumstances looming in front of us, there are many ways to combat anxiety or unease as a real estate agent. One of the best ways is to educate yourself. Continuing education requirements can help you put your best foot forward as a real estate salesperson or broker. Contact us for more information about courses that will help you no matter what the future holds.