How is the Current Political Environment Affecting Real Estate?
by Joe Killinger
There always seems to be some uncertainty in the real estate markets as we come upon a presidential election but this particular election seems to have a bit more of a hold on the market. I am not sure I have ever seen an election create such a stifling environment as this current election. This is partly due to the uncertainty of how and what any new leadership will do to stimulate the economy. Many people believe that if Donald Trump gets into office, he will try to make big changes to the economy by creating a stimulus package that favors big business. If Hillary Clinton wins it seems we are all expecting more of the same the current administration has been working on so people are questioning simply, if the current economy is suffering and when and how much will the interest rates increase.
We have recently heard Investors stating they are waiting to see the outcome of the election. Ultimately though, no matter which candidate becomes President, the rates will increase in the somewhat near future. With interest rates increasing, we should see more inventory creating more opportunity for buyers, but at what price to the sellers is the question since we are not sure of how much the increase will be. Historically, increases in interest rates have negatively impacted property values.
The bottom line is that if you have good fundamentals in your investment strategy this could be a great time to be buying as some potential buyers are fearful of the market and are sitting on the sideline. Know your market and manage your investment efficiently and you will be ahead of the game.