The Effect of the Election on Real Estate

Donald J. Trump, 45th President of The United States of America, will most likely bring some much needed stimulus to the economy in his first year. His policies point to a combination of tax cuts and government spending in the form of upgrading the nation’s infrastructure and for national defense, which will provide a short term boost to the economy in the first half of 2017.

Inflation may rise from a growth in GDP, which will pave the way for the Federal Open Market Committee (FOMC) modestly raising interest rates. The US Dollar (USD) has been gaining strength now at $1.05 to the Euro (EUR), which had almost reached levels of $1.60. This may slow down the trend of foreign real estate investors entering our market, but not stop it completely. The US is still the safest and easiest place in the world to do business. A Trump presidency points to uncertainty and volatility, and that may be exactly what this country needs.

Americans are hardworking and resilient–they wanted a change from the status quo and they voted for it! What was deemed to be a landslide democratic victory, has flip flopped into what promises to be a roller coaster ride of changes. Let’s work together to make sure the changes are for the better.