It’s now a month post election and the dust has (mostly) settled. So, everyone is asking – what impact will the new administration have on the market?
Our answer? It depends who you talk to…
As we noted in our previous article on what the election means for our market, much of the post election impact and change in administration is based on emotion and consumers’ reactions to the election and its results. This is one of the only factors we have been able to measure thus far. In typical Washington fashion, we’ve had calls from clients on both sides of the aisle, with very mixed reviews!
While it’s too soon to tell, so far we’ve noticed no discernible change in the market or with most of our current clients. Emotions seemed to have leveled out since those first few days immediately following the election and we anticipate they will continue to do so as time goes on.
THE ONLY MAJOR CHANGE SO FAR POST ELECTION – INTEREST RATES ARE ON THE RISE
The major tangible change we have experienced post election has been a notable increase in interest rates. Don’t worry, it’s not time to panic! For the last few years, rates have been at truly historic lows, so we have been anticipating a rise in rates. We are inclined to think rates will continue to rise, but at a slow pace.
That being said, if you’re thinking about a move sometime in the near future, now might be the time to act.
WHERE DO WE GO FROM HERE?
Again looking back on our article on the upcoming election, we anticipated a slower market in the lead-up to the election and an active late fall market post election. In reality, we saw this year track pretty evenly with other years in terms of business in the fall market. If anything, it may have been slower in the late summer months and a bit busier than usual in the final month prior to the election. We’ll see what December brings.
Our prediction for the new year is similar. Despite all of the media coverage around the election and administration change, we don’t anticipate any major changes.
We do expect some possible growing pains as our area decides how quickly change might come to Washington – and what that change might mean for them.
Democrats may be a little more pessimistic about the economy under a new administration while Republicans may be a little more optimistic. This is Washington – so that is nothing new!
HERE’S WHAT TO LOOK FOR…
The biggest threat to our local market is a potential major reduction in the federal workforce, or another government shutdown. If that doesn’t come to pass, there shouldn’t be any major impact from the election or the new administration on our housing market or local economy. If the promised tax breaks do come into effect, we might even see a small surge in the market as paychecks feel larger and the monthly budget inflates. The change in interest rates is something to watch, though a slow rise likely won’t do much to change the market.
Stay tuned! We will continue to monitor the market to let you know if anything changes.
In the meantime, it’s business as usual!
Regardless of which way you lean, if you’re thinking about making a move, don’t hesitate to reach out if you have any concerns or if we can help guide you through your current situation. We’re always happy to chat so we can help you truly love where you live. That’s our passion!
For more articles like this one, sign up for our weekly blog roundup.