Presidential elections in the US are not new to controversies. However, everyone around the world would agree to one thing – never has such a controversial figure like Donald Trump been elected to the top post. Trump’s campaign trail has been riddled with multiple controversies. From racial slurs to alleged sexual abuses – he has been labeled with all. But USA has voted and they have given Trump the mandate to lead them for the next 4 years.
The present occupant of the Oval Office is as much about controversies as he is about his business ventures. He has been a real estate tycoon; probably the brightest spot that will drive the market sentiment in the years to come. Even though the US real estate market is going through a phase filled with uncertainties, we can expect some positive and favorable policies from his government. The Federal Reserve has hiked the interest rates, which has caused quite a stir in the mortgage markets with the rates nearing the 4.5% for 30 year mortgages. This has led to locking of lower mortgage rates by homebuyers before they aim higher.
Uncertainty is the new norm in Washington and real estate markets are not untouched by it. Here are a few ways how president Trump’s tenure is going to affect the real estate market in 2017:
Expect changes in the tax structure – It is probably too early to predict how the Trump factor will affect USA’s real estate market. However, if market experts are to be believed then we can expect watering down of the business regulations. This in turn will allow the lenders to be a little more liberal with their lending. It is also expected that the policies of the new government will make favorable changes in the tax structure, which will be a cue to the holding companies to push for real estate investment sales.
Prices are going to shoot – This was long overdue and we will witness a steep rise in the price of real estate properties. The pace at which there will be a price rise will depend on the policies already announced by Donald Trump. He wants to make America Great Again which implies creation of more jobs for Americans and that will drive the price rise in 2017.
Policies to favor industries – Trump has been in the real estate business for long and his team of policy makers will have a natural leaning towards real estate. Our president has been a part of this industry for long so his decisions and moves is bound to favor the real estate market.
Donald Trump will find it hard to shrug off his real estate past and his leanings are clear from outset. We are in for a great year in the real estate and Trump is going to build highways, buildings, railways and bridges – all that will bring a smile on the faces of real estate businesses.