How Trump will impact SoCal housing

march

After Tuesday people have been contacting our office asking questions regarding the future of real estate and the environment under President Trump.   We are waiting to make a prediction to see who he appoints to cabinet posts and the EPA, etc. Our advice: if you voted for Trump hold him to his promises. If you voted for anyone other than Trump; get up, dust yourself off and prepare to fight.  This may be one fight none of us can sit out – Earth is going to need everyone that is ready to fight (the power).

Southern California housing under a Trump presidency could see higher mortgage rates but also emboldened builders who hope regulatory hurdles will be reduced, said regional housing experts.

California continues to have some of the highest home and rent prices in the nation, with wages not keeping pace in many metro areas, especially in San Diego County.

While the president-elect did not make housing issues a cornerstone of his campaign, his history as a real estate developer gave some analysts an idea of what his next moves could be.

Home costs –The cost to buy a home could go up if mortgage rates rise, as they have since Trump was elected earlier this week.

Global uncertainty typically pushes international buyers to buy U.S. bonds, which pushes down mortgage rates and makes borrowing cheaper, said Ralph McLaughlin, chief economist of Trulia.

However, with some foreign markets concerned about Trump, it could push investment out of the country.

“The U.S. economy now looks less safe because we don’t know Trump’s policies toward trade,” McLaughlin said.

Yet, sometimes America is the cause and the solution. In 2011, when the debt ceiling crisis led to a credit downgrading of the United States, the global uncertainty (along with fears of a Greek debt default) actually led foreign investors to buy more long-term securities in the United States.

read more at: http://www.sandiegouniontribune.com/business/real-estate/sd-fi-trump-housing-20161110-story.html

disclaimer: for information and entertainment purposes only

 

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