A: The election is over. The outcome such a surprise to so many.
How the upcoming presidency of Donald Trump, or the anticipation of it, will affect our local real estate market is the question in my world today.
Here is what I’m reading and hearing:
The economy is likely to continue to create new jobs, even though we are in the seventh year of the “recovery”, as per CEO of Marcus Millichap, Hessam Nadji. Significant investment capital continues to flow into the U.S. due to sustained, inviting returns of 5 to 7 percent.
Interest rate hikes anticipated for December, are likely to have little affect on market zeal. They are predicted to be small and steady over the coming months (a measured pace) as the economy grows and inflation re-appears.
Lack of over-building, in the commercial sector, and inventory, in the residential arena, coupled with continued high demand should support continued appreciation in values.
It is likely that a Republican administration and Congress, will preserve the Home Mortgage tax deduction, supporting greater home-buying affordability.
Whether we like the result of Tuesday’s contest, or not, the Democratic process worked; a peaceful, upcoming transfer of leadership from one party to the other.
Let’s move forward with confidence. Our commitment to making the best of what is will create the successful experiences we have.
Now is the time to find that next, perfect home for you!
Karen Starr, the Grubb Co., (510) 414-6000, firstname.lastname@example.org.
A: This contentious and hard-fought presidential campaign has been emotional and at times, toxic. Uncertainty world-wide, for any reason, can adversely affect the stock market. This in turn could influence how much disposable income people have to invest in real estate. The inevitable increase in interest rates— in small doses- has already been baked into the market so should not create undue negativity.
What can you do to insulate yourself? Take heart! Do not fear the unknown. Take a long term view of both the real estate and stock markets. Keep cash available should buying opportunities occur in either. The San Francisco Bay Area real estate market will remain very strong, regardless of nation-wide politics. Scarce inventory, still record-low interest rates, a robust job market and our exceptional lifestyle will keep our housing prices on a steady climb.
Jill Gumina, Hill Co. Real Estate, (415) 265-1717, email@example.com.
A: As we wait for the upcoming administration to take form, there is great uncertainty in not only the national and world financial markets, but the real estate market as a whole – and particularly in the Bay Area.
There has been little said about real estate and home buying the national election (ironically as the winner is a real estate mogul) but traditionally, more affluent, liberal, urban areas see a more volatile market when sudden and surprising national changes like this occur. There is the possibility that people will put off their new home purchase or hang on to their home until the dust settles. The dust always settles. The key is to not panic and pull back on the reigns because of the national or local election results. It’s this behavior that actually will slow and potentially downturn the market more than who will live in the White House.
Greggory Onzo, Vanguard Properties, (415) 609-5451, firstname.lastname@example.org