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Thursday, December 15, 2016

How the Election Has Affected the Real Estate Market

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There's some good news and there's some bad news.
First, the bad: mortgage rates have shot up since the election.
From a low of 3.47% on November 7th, the average fixed 30-year mortgage rate increased to over 4% by the end of November.
Economists are saying this kind of volatility is likely to continue, with day-to-day changes driven by the moves and statements of the incoming administration.
The good news is that there are plenty of reasons to be optimistic down the line.
Promised tax breaks could reinvigorate sales of luxury homes, which have seen a glut lately.
This could have a ripple-down effect throughout the rest of the real estate market, spurring sales and construction of mid-level and lower-priced housing.
Also, looser regulation could further stimulate construction and make it easier for buyers to obtain mortgages.
And while these are long-term improvements to look forward to, there's one thing to be grateful for right now:
One way or another, the election is finally over.
You might have seen that the stock market has been surging in the past few weeks.
That might be a vote of confidence for our President-elect and his anticipated business-friendly policies...
... and it might also be a sign of relief that the election and the associated uncertainty are done with.
It certainly seems things are getting back to normal as people come to realize the world's not ending.
In fact, many people who were waiting on the sidelines while the election was going on are now entering the real-estate market.
It's a great time to take advantage of this if you are selling.
Home prices are near record highs. If you'd like to get an idea of what your home is currently worth, check out this calculator which takes into account recent Phoenix sales:
And if you're looking to buy, there are two things you should know.
First, even though mortgage rates have gone up, they are still historically very low, and worth taking advantage of.
Second, many new homes have entered the market since the election.
It's definitely worth investigating what's available around Phoenix right now.
And if you want to talk about the election and where real estate might be going in the coming months, give me a call at (480) 502-0505. I'm here to help.