With the new administration settling in here in Washington D.C., you can expect to a few major changes to take place.
How will President-elect Donald Trump affect our real estate economy in the near future?
First of all, we know that whenever there is a new administration, a shift of some kind is going to take place here in the Northern Virginia market. A new administration means new policies, and that’s where the real change takes place.
Last week, interest rates increased to 4.03%, which is the first time since early 2015 that they’ve been above the 4% mark. Is that a reflection of the election? Possibly. They started creeping up after the day of the election.
Federal Reserve chair Janet Yellen has indicated that sometime this month, the Fed will raise interest rates. However, she’s made this same prediction many times before, and they ended up staying where they were, so as far as that goes, I’m content to wait and see what happens.
Regardless, we believe that interest rates will increase somehow, some way, as a result of a new presidency. As interest rates rise, buyers won’t be able to afford as much home. For sellers, it will reduce the price they can sell their home at.
With all the transitioning taking place, there are a lot of unknowns floating around out there. We know that there is going to be change, we just don’t know what kind of change. Nobody has a crystal ball, so if you’re in the market to buy a home, sell a home, or invest in real estate, you might as well do it now.
If you have any questions or would like to make a move in the market sometime soon, don’t hesitate to reach out to me by phone or email. I’d be happy to help!