2017 has been an interesting year in the United States with Donald Trump becoming President. The last 5 weeks since Trump’s inauguration in January 20 have been an intense affair, with nobody sure what the new President would do next.
It seems like the country is politically divided into two sides, each with a completely different view on President Trump. What does this mean for you? Should you sell your real estate in the United States fast in 2017 before things get any crazier?
Or maybe, just maybe, perhaps you should buy real estate in the United States online in 2017, because Trump may actually be good for the property market in the country – after all, he made his billions from real estate and knows the ins and outs of the industry.
Without getting lost in the politics, we analyse the current situation in the United States and tell you about the latest property trends in the country for February 2017.
#1: Confidence in the real economy is up since Trump became President.
The Dow Jones Industrial Average hit the 20,000 mark since Trump took office, and the indications are that business confidence in the US remains higher than ever. Small business owners say that they are more enthusiastic about the US economy today than they have ever been in the past, according to a new survey from JPMorgan.
The study found that small business owners are much more confident about the US economy under President Trump compared to the media, academics and other so-called experts.
80 percent of the business leaders in that survey said that they were confident about the direction of the economy under Trump and 76 percent said that Trump will be good for the US economy. Only 12 percent felt negatively about the new President.
#2: Home sales are up!
The confidence from the real economy can be seen in the housing market – home sales were up by 3.3% in January 2017. This is the highest it has been for almost a decade. Clearly, a lot of people are enthusiastic about buying homes now. The lack of inventory has created a demand/supply mismatch, which has only drive the prices up much faster.
As economist Lawrence Yun says in an interview with Yahoo Finance, “The biggest hurdle is the fact that there aren’t enough homes. Hopefully as we proceed through 2017, more inventory can show up, homebuilders can build more homes and there would be healthier development.”
#3: Mortgage rates are likely to increase, but the market should be fine.
The U.S. Federal Reserve has been slowly increasing the interest rates. Mortgage rates are no longer as low as they have been in recent years, but that is unlikely to affect the demand for properties for sale in the United States.
Mr. Yun explains, “Exceptionally low mortgage rates of 2016 are definitely over and an ultra loose monetary policy environment is over. So consumers should anticipate that mortgage rate will be higher. It appears to be stable at the moment but could inch higher closer to 5% by year end.”