To make sure we provide information you are interested in, when you're interested in it, if there are stretches of
updates you don't open, we'll automatically decrease the frequency of the updates you receive. If you like the updates,
you just need to open them to keep receiving them.
You already have a saved search with that name. If you save, you will overwrite the existing saved search. Are you sure?
December 21, 2019 at 8:28am | Mac Rogers
you've been paying any attention to the news this week you've probably seen that President Trump was impeached last Wednesday.
Hi it's Mac Rogers with Albert Rogers Realty.
I've been getting some questions about the impeachment and how it might affect the real estate market headed to 2020. So I thought I'd take a minute and talk about it and see where we go from here.
First off here's a simple overview of the process to get a little understanding of how things might proceed. First, the house of representatives drafts or levels charges against the president and then sends what we call articles of impeachment to the
senate for trial. It's important to note that impeachment does not mean the president has been removed from office.
In the senate, there will be prosecutors and the president's lawyers just like a regular jury trial. In this case the chief justice will be the presiding judge and the senators will be the jury deciding whether to remove the president from office or not.
Now there are other things to consider but for this video this would suffice.
So how did the markets react to the news? Well a lot of nothing really. Everyone knew that this was going to happen and it wasn't a surprise. Stock market barely moved as it was already "built-in".
Keep in mind that the real estate market is built essentially on the fundamentals of the economy and if you've watched some of my videos on the economy and recession in the past, I've talked about what's driving this real estate market.
We've got low unemployment. Near record lows. We've got good GDP growth. Consumer confidence is at an all time high. Interest rates are very low. Also near record lows. PLUS on top of these, the low inventory that we've had in the last 5-7 years. So at
the moment I don't see anything happening. These numbers are solid. Most economists are still forecasting home prices to go up in 2020 and 2021.
So let's assume for a moment that president Trump is removed from office which I don't think will happen given the fact that everyone is voting along party lines. If the market perceives this as a negative and consumers start to get worried, then our
economy probably will start to go in the other direction. It would still take several months of changes to affect the real estate market.
We can throw out all the numbers and what-ifs but to me at the end of the day it's the fundamentals of the economy, consumer confidence, lack of inventory and low interest rate that have to get affected.
Housing, lending and interest rates are stable. FED voted to NOT raise the FED funds rate just last week. Economy still expanding. Add to this that most economists are forecasting that millennials are going to start coming into the real estate market,
so things are looking up.
If you are a first time home buyer, take advantage of these low interest rates and stop paying your landlord's mortgage. In this part of the market there is a lot of competition since there is a lack of inventory at the first time home buyer market.
For home owners wanting to upgrade, there is pent-up demand for your starter home and there's a healthy inventory of move-up or luxury homes.
So what are your thoughts? What concerns you about this market? What are your plans? I hope you find this video informative.