Although Trump has been involved in real estate in his past business ventures, he has not indicated how his role as President of United States will impact the real estate market and the policies he will put in place regarding real estate. However, economists predict that there will be a short-term stimulus of the economy. This will be initiated by the tax cuts and government spending on infrastructure as well as on national defense. However, inflation will kick in at some point and may cause high interest rates. There will also be increases in consumer confidence that are likely to influence economic growth and faster GDP growth. Other factors that are likely to influence the real estate market during Trump’s era includes higher employment rates, lower American budget deficit, and more tax revenue. However, if this stimulus is only a short-term boost for the American economy, it is likely that a larger budget deficit could cause interest rates to skyrocket. …show more content…
However, if there is a rise in tariffs, this could also impact consumer prices causing them to increase substantially and also causing a decrease in exports and imports. However, it is still too soon to predict if the trade deficit will likely influence the American economy and people. There also may be more gyrations in the stock market as the financial market becomes unsettling and corporate investments hold back on spending decisions.
Another factor that will contribute to the welfare of the real estate market during the Trump Administration is the change in Dodd-Frank financial regulation. This will allow smaller banks to handout more loans and will further boost home-building. However, this will also impact large banks such as Wells Fargo as there may be capitalism and use of taxpayer