Do you have a property for sale in the USA? Billionaire Donald Trump’s amazing win in the 2016 Presidential race is the biggest story in US real estate right now. It has certainly shocked the real estate industry, which was convinced that Hillary Clinton was going to win. But that’s not how it turned out to be.
So what can you expect if you’re trying to sell your property in the USA online in 2017? For one, anything is possible. The Fed could hold back on the interest rate hike in view of the uncertainties in the market.
There’s a fear of recession as Trump is expected to slash public spending considerably. Fortunately, the stock markets are doing well so far. So here are the 4 biggest trends to watch out for in US real estate.
#1: There won’t be any significant changes to the interest rates as yet
The immediate question is whether there would be any big changes to the interest rates following Trump’s win. Rick Sharga, vice president of the real estate auction site Ten-X, says, “I don’t believe that there will be any significant changes to interest rates, at least in the near term, since the underlying fundamentals that have led us into a low-interest-rate environment haven’t changed.”
Mr. Sharga is an optimist and he expected Trump presidency to be positive for the housing and mortgage markets in the USA. He says, “He seems committed to bringing regulatory relief — and regulatory certainty — to the financial-services industry, which should make more credit more available to average home buyers who have been locked out of the market by today’s extraordinarily tight credit standards.”
#2: A cooling down of properties in the West Coast and the Northeast
Areas such as San Francisco, Southern California, San Jose and Seattle have experienced some sort of a housing bubble for the past couple of years. Now, they are expected to cool down a bit. Already, these markets are beginning to show signs of a slowdown. This is a good thing from the buyer’s perspective, as home prices in these areas had become unaffordable for most people.
#3: The South is booming again
One of the consequences of Trump’s win is that there is a renewed confidence in the so-called Bible Belt – areas such as Winston-Salem in North Carolina, Dallas in Texas and New Orleans in Louisiana. A lot of buyers are migrating to the South, because homes are cheaper there and there really isn’t much of a difference in the quality of life compared to the East Coast and West Coast. A median sales price in North Carolina, for example, is $130,150, which is pretty low. Compare this to the median sales price in New York City - $599,900.
#4: Suburbs are back in fashion
For a brief period, city centres were fashionable, especially with the younger home buyers, but now, most people find apartments in the city to be expensive. Suburbs are back in fashion, especially with the fall in oil prices – which has made car travel cheap. Homes in suburbs that are rich in amenities are very popular right now.