Three Things to Look for in 2018 on Trump, Economy and Real Estate
As we come across the one year anniversary of President Trump’s shocking election victory, let’s discuss what should real estate buyers and sellers expect in 2018. In his first year in office the stock market continued its bull run hitting record highs, real estate continued to rise and interest rates remained close to historical lows. On the legislative and policy front not much happened though. So what are the trends we should look for with the 2018 Trump real estate market?
1: Will the 2018 Trump real estate tax plan get passed?
The current tax plan being proposed aims to lower overall rates, but eliminate or reduce some itemized deductions. The mortgage interest deduction will be kept, but one plan aims to reduce the current limit from $1,000,000 to $500,000. This could definitely have an impact on buyers looking at homes in prices where the mortgage will be above $500,000, but less than a million. However, lower overall rates could offset this effect.
Another impact of the Trump tax plan could be to eliminate or reduce deductions for local taxes such as property taxes. One proposal calls to limit property tax deductions to $10,000. In the Arlington, VA market and Greater DC area, this would have the greatest effect on homes priced around $1 million and up. However, this group of buyers could have this affect offset by lower rates.
2: How will government hiring affect the greater DC real estate market?
In 2017 federal hiring came to a standstill. Will this continue or will hiring shift to different parts of the federal government or contractors. Many times changes in administrations do not affect the overall government jobs picture. It just shifts it around. Trump does not fit the typical administrative change so we need to keep looking at the overall affect on the government jobs picture. Buyers want certainty on this in order to confidently buy homes.
3: Will the economic picture change?
Overall the stock market and job market have continued to grow over the last year all while interest rates have remained low. If this continues do not expect many changes to current housing trends. Expect prices to rise and inventory to remain low. However, any changes in any of these three areas could affect home buyer confidence.
If you are looking to buy, sell, or rent along the Orange Line, no one has more guarantees for your satisfaction than Orange Line Living. Send us an email at [email protected] or call/text (571) 969-7653 anytime.