Today will be filled with many emotions as some are happy, some are sad, some worried & anxious and some all of the above. Remember, it costs $0 to be kind.
From a Real Estate perspective, many feel confident that the election outcomes will help move the market forward. Only time will tell, but the most common sentiment I personally see/hear is that people feel economic conditions will improve, which leads to higher consumer confidence, especially when making a big move/purchase.
Initially the bond market rose, which often leads to Mortgage Interest Rates doing the same. That’s not great news considering rates have been on an upward climb for weeks after hitting 2-year lows in September.
The stock market jumped out to big gains early this morning, which doesn’t impact the entry level market as much, but certainly can play a role in the luxury sector.
Opportunity Zones should expand, which will bring in more capital for development in lower income areas and hopefully more affordable housing.
Favorable news for Capital Gains and their associated taxes with Trump in power.
Estate tax exemptions are likely to increase, which helps those leaving wealth behind for future generations.
Nationwide Rent Control becomes unlikely for now.
The DOJ will likely back off a bit from it’s recent focus on Real Estate and NAR (National Association of Realtors).
For us in the Phoenix Metro Market, we’ve seen active inventory increase for some time and buyer demand be waiting on the sidelines. Does this shift overnight? Probably not. However, I would anticipate a more active 2025 and especially during spring time. Prices have held fairly flat despite sluggish sales and supply exceeding demand for only the 2nd time in a decade, but that cannot last for too long if buyers don’t come back.
From a personal standpoint, I hope there is a well rounded and strong leadership team in place to guide the government. If you know me, you know I don’t like politics and feel like our system is flawed with candidates that most don’t love to begin with. Greed, corruption, lies… what we can control though is our work to become a better person so that’s my aim each and every day.
