The surprise election of the new administration has changed the outlook for the future of the economy and real estate values. It appears that we may be headed for a period of higher economic growth, via a stated desire for increased infrastructure spending, corporate and small business tax reform, deregulation, and other pro-growth policies. Already we have seen a run-up in construction, steel, home improvement, and restaurant stocks. The rest of the world, wanting to get in on the action, has started buying dollars, resulting in a surge in the dollar against other currencies.
What does this mean for local real estate? First of all interest rates look to start moving up as economic growth and interest rates are highly correlated. If you still have not refinanced, you may want to start the process. If you are a buyer on the sidelines, you may want to consider getting into the market while ultra-low mortgage rates are still available. What about home prices? That is a mixed bag. As interest rates move up, home prices generally decrease but as economic growth increases, a rise in demand for housing is foreseen. So expect a choppy outlook for the near term with slight upward pressure on home prices. I offer insight and advice on local residential real estate matters. Call me with questions on a home purchase, home sale, refinance, or other real estate issues.