The Trump Real Estate Effect 2017
I’m writing this in the first week of January 2017 and even though where a couple weeks away from the inauguration of Donald Trump, speculation abounds as to how his presidency will effect the real estate market.
While this speculation is going on, a dramatic effect on real estate is happening because just a couple of weeks ago the Federal Reserve Board increased interest rates. But, as I’ve said before, more importantly than the Federal Reserve Board’s interest rate increase was the fact that they stated that they would be raising the interest rates three more times in 2017.
Here in San Diego, with the average residential home price around half $1 million, it is already extremely hard for the majority of working people here to qualify for a home mortgage unless they put a substantial down payment. Naturally, as interest rates increase this will only make the situation worse.
With Donald Trump being a real estate mogul, I see this as a big plus for the real estate market in the United States. Actually, I think Donald Trump’s emphasis on creating more jobs and bringing back jobs from overseas will be a big plus for re-instilling confidence and will be an incentive to participate in the American dream by owning your own home.
Yes, I believe Donald Trump’s policies will minimize, if not offset, the Federal Reserve Board’s interest rate hikes!
Plus, with Donald Trump policies to ease stifling government regulations, especially the overly restrictive and cumbersome Dodd-Frank Act, we could really see an increased flow of capital from the banks back into commercial as well as residential real estate markets.
In my opinion, the real bottom line for residential real estate in 2017 is going to be very positive, because the real estate market is going to have one of its own at the helm of the United States! Yes, if anyone really understands the real estate market, it’s Donald Trump!
For additional information on Donald Trump, I suggest a visit to Wikipedia.
The Trump Real Estate Effect 2017
My thoughts exactly. Thanks for the reinforcement!
I am not optimistic. Uncertain times affect major purchases. We don’t know what is happening from o e tweet to the next. If tax reform goes through and the standard deduction for a couple goes to 24k, the tax benefits of home ownership go out the door except for those whose tax write off is much higher.
I think Trump’s presidency will be good for real estate; after all, real estate is how he has accumulated his wealth…an excellent role model for real estate investing.