What does the Election mean for real estate markets?
As I write a blog on real estate, that will be my sole focus in commenting on the outcome of the Election.
The bull case
The removal of a lot of strangling regulations and the end of gridlock in Congress will produce stronger economic growth. Major infrastructure spending will boost jobs and wages at the lower end, while lower corporate tax rates and lower personal tax rates will produce increased personal wealth. Interest rates will rise, reflecting the stronger economy, and the demand for housing will increase. Greater wealth and confidence will provide a boost to the higher end of the market.
The bear case
The next President will, with the support of Congress, implement all the campaign “promises”, in particular those on trade protectionism, which would lead to a major recession. Interest rates will fall and the housing market will slump.
Campaigning and governing are vastly different endeavours, which is why I wrote “promises” in the last paragraph. Since I am an optimist by nature, I find the bull case more plausible than the bear case.
For comment on the outlook for mortgage rates read Is this the end of ultra low mortgage rates?
If you are considering selling your home please contact me on 617.834.8205 or Andrew.Oliver@SothebysRealty.com for a free market analysis and explanation of the outstanding marketing program I offer.
Not sure which broker to use to sell your home? Read Which broker should I choose to sell my house?
If you are looking to buy, I will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated