Palm State Mortgage Company knows there really is an Elephant in the room! We can’t talk about financial issues or housing marketing trends without acknowledging that we are in a transition period to a New Administration.
A New Age Dawns in Housing Markets and American Hearts.
Housing Market: Big Changes Ahead
We all know president-elect Donald Trump began his career with real estate. It is safe to assume he is bringing business acumen to his policies and protocols. At Palm State we are curious about the impact the new administration and the Republican legislators will have on the middle class who crave home ownership.
In the housing market, Palm State Mortgage Company is aware the middle class house hunters are tired of seeing prices go up while available selection goes down.
Housing is on Everyone’s Agenda:
All the economy and real estate pundits are expressing hopes and opinions about the trends coming in the near future.
Kevin Finkel is executive vice president at Resource Real Estate, a Philadelphia-based real-estate investment trust (REIT). He stated, “One part of the struggles of the middle class that came through in this election was that they can’t find good affordable housing…” Then he added, “But you didn’t see any discussion about the supply of affordable housing during the campaign.”
Nela Richardson is chief economist at Redfin.com, a Seattle real-estate research sitel. Mr. Richardson stated intensely, “America’s growing housing crisis… is a singular issue that cuts across all segments of voters…Every voter is a housing voter, and as a country we need the new Trump Administration to enter a new chapter in housing policy,”
In fact, Richardson, like other pundits, incited some criticism, saying “in the past “developers like Trump focused on attracting wealthy new residents by building expensive condos in the city center and ignoring the needs of a growing working class that demanded affordable housing.”
Policy Making President
But, Palm State quickly points out, Trump, the private investor, builder and business man is not the same animal as Trump the policy-making president.
At Trulia, we find Ralph McLaughlin, the company’s chief economist. He predicts the New Administration will be both “a boon and a drag on confidence of American home buyers.” Mclaughlin explained there could be short-term impacts on the so-called “Costly Coasts.” Likewise, he also predicts that home buyers in the “Bargain Belt” of blue-collar housing markets might be a little hesitant in this brave and unexpected new world.
Trulia View: Still Looking at the Red and the Blue
On the one hand, McLaughlin says, “Home buyers in economically healthy blue states will likely be rattled and more hesitant about the future of the U.S. economy.” This “will curb their interest in making large investments,” he said. “In economically stagnant red states, on the other hand, home buyers will likely feel a surge of confidence that could bolster demand.”
Housing and Jobs: Words To Build Hope Upon
Before any new administration can build reality, they have to build policies and goals. Like you, we cleared our bleary Election Night Marathon eyes and heard president elect Trump’s positive words in his Nov. 9th acceptance speech.
“We are going to fix our inner cities and rebuild our highways, bridges, tunnels, airports, schools, hospitals,” And he added,“We’re going to rebuild our infrastructure and we will put millions of our people to work as we rebuild it.”
Housing Visions of Past Glory
At Palm State Mortgage Company we could envision “dramatic new investments in infrastructure.” Indeed, old school history students know such projects could increase housing demands.
Exciting New Home Ownership Market.
This happened when Works Progress Administration projects made America Great with the “Golden Gate Bridge and Hoover Dam.”
We see Americans on the move in the near future, re-locating to build new hope as our infrastructure becomes renewed.
Rick Sharga, executive vice president of Ten-X, (formerly Auction.com) sees the vision also. “If President Trump is successful in launching massive rebuilding programs in inner cities and for aging infrastructure across the country, it could have an impact on home building by consuming a lot of available building materials and skilled labor.”
Re-building the America’s Beating Heart
An issue we did hear our president elect speak about repeatedly is the fight to restore job opportunities. With better wage incomes, Americans can feel a new confidence in forming families and owning homes. Housing is key to family life. As Sharga said the “Key to the housing market fully recovering depends on more jobs and better wages.”
With new jobs and better wages, and reasonable mortgage payments, the American family can re-build more than the housing market! They can re-build the honest spirit of greatness in this country.
In Sharga’s words, “If President Trump is half as successful as his plans call for, the housing market will soar.”
At Palm State Mortgage, we tend to agree. We’re already seeing it. Come and talk to us about your home loan. We’re helping re-build American homes – and hearts.
