Sunday, November 12, 2017
Housing Market
Although investor confidence went through the roof after President trump election and there was a spike in the labor market and stock market. The housing market didn't get the same economic spike like so many other industries. With Trumps anti immigration law labor has become scare for construction companies leading to higher prices of housing. Also the new tax plan looks to cut deductions for homeownership which could also cause a spike in housing prices. scarcity of material and more expensive building permits have also hurt the housing industry. These high prices on homes has hurt consumers confidence of the market. hopefully The housing market bounces back.
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I believe the housing market will bounce back. I know someone who owns a business in construction and he is busier than ever. the market may be higher but there is still plenty of demand for construction.
ReplyDeleteInteresting to see how much of an impact a candidate can have after the presidential election is won. Brings forward the idea of non-agenda oriented economic impact like a personality and individual nature of a public official. Something to consider in the ballots I guess.
ReplyDeleteIf interest rates keep rising and somehow rise sharply that will also hurt the house sale market.
ReplyDeleteAnalysts are currently saying the housing market is incredibly overvalued which I believe is the point you are trying to convey. However, I do not see it crashing sharply. The demand for housing is basically going to mirror the population growth rate in the United States which is currently at an all time low, but still greater than 0%. Due to the increasing population that is renting instead of buying along with the renting trends of millennials, this could mean more of the houses purchased/built are purchased or built purely for investments and owned by landlords. There will be entrepreneurs that are trying to capitalize on this scenario and because of that I do not believe the housing market is as grim as people are saying.
ReplyDeleteThe housing market is expected to crash soon. This stretch has been the longest gap in between housing market crashes in our country for quite awhile now. prices are likely to stay high until the crash.
ReplyDeleteI agree with this, I think that the housing market has been taking hits for a while. Although, I think the construction industry will still be on the rise due to the Hurricanes that have hit in the south recently. I think that this will help keep the housing market afloat for now, but it will definitely see some major decline soon.
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