Everyone at Feeder is excited for all that awaits us in 2017. With the unexpected election of Trump to the Presidency, many of our clients have been wondering if now is a good time to rent, buy or sell property. Indeed, it is challenging to predict what will happen in broad strokes for the American real estate market, but at Feeder we have a few projections of what will happen in the New York City market.
Since Trump had not detailed many proposals on the campaign trail, we anticipate that he will be influenced by those around him to make policy decisions. We expect him to be unpredictable and although we think he’ll most likely stay closer to conservative policies, we do think that there will be surprises when he is far more liberal in his approach.
One area that we know Trump is passionately supportive of is business in America. As a real estate developer, we also anticipate that this endorsement of businesses in America will extend to wanting to see a building boom take place. To do that, interest rates will need to continue to be low, though perhaps not as low as they have been during President Obama’s tenure.
Already we have seen interest rates begin to creep up. With the Federal Reserve at the helm, interest rates have finally started to rise, as we anticipated. But, with Trump as President, we think that there will not be a dramatic increase in interest rates going forward. Instead, we think he will use the Presidency as a bully pulpit to advocate for his interests.
Keeping businesses competitive in America is a theme that he returned to time and time again while campaigning. Though we anticipate that his advisors will have significant sway over his opinion on other domestic matters, business is one area where we think he will hold firm and want to create the best environment possible for businesses to thrive.
As a result of this, Feeder’s projections are that interest rates will stay relatively low in the immediate term. We think the New York City real estate market will continue to be a good place to invest in and believe that residential sales prices will continue to rise through 2017. But, as we have seen, residential rentals will go through a period of ongoing corrections. We predict that rents will slightly decrease.
We expect that Trump will fight to continue to use Twitter as a platform to address the American people. He found it to be a wildly successful tool in defeating Hillary Clinton and a way to control the narrative without having to go through the traditional media platforms, like newspapers, TV appearances or press conferences. If he is able to continue his conversation on Twitter, we think he will use this tool to set the national agenda, build a consensus around his ideas and perhaps become a successful President, engaged with the American public in a way that no prior President has ever been before.
We think that 2017 will be a dynamic year for America and are confident in the New York City real estate market. Will the trend continue of rising real estate prices and low interest rates through to 2018? It is too early to tell, but we are optimistic about what the future holds.