All indicators are that Joe Biden will be elected President and take office on January 20th, 2021. regardless of whether one voted for the new President or not, people may wonder how the top down change will effect our real estate market, both locally and across the USA.
In reality it won't likely have an immediate effect. It will take time for the new administration to get its agenda out to the public and ultimately passed through Congress. If that agenda results in an economic slowdown, of course that could have a derogatory effect on real estate.
I have found that real estate can do well even in a down economy because people still have to live somewhere and owning your home still appeals to a large number of people. In fact this very year is a testament to that as the pandemic swept through the economy but real estate ran counter to the decline. Sometimes if the stock market crashes or goes into a slide a large chunk of capital gets moved to real estate as a "safe haven." This can lead to lower rates on mortgages, large capital investment in multifamily properties and commercial real estate.
The most important thing to remember is that we should all pay close attention to the policy decisions the next President makes and if you like them vote for that party in the mid-terms, if you don't, then vote for the opposition party in 2022.
In the mean time we can still enjoy the low interest rates we have right now and a solid and healthy real estate market as we move into the final weeks of 2020.
No comments:
Post a Comment