While there is no doubt that Donald Trump knows what makes the real estate market tick. This is a man who has been there, done it, lost it and risen like a phoenix from the ashes again. When he was surprisingly installed as US president last year many in the real estate market began to rub their hands with glee. Surely, Donald Trump would be good to his promise for the US investment arena, economy, employment market and protection of companies going forward?
Healthcare vote delayed
There are now serious concerns about Donald Trump’s ability to push through his more controversial policies even though the Republicans have moved into the White House and dominate the House of Senate. Just a few hours ago it was announced that a vote on the key reform of Obama’s health care system was being delayed. It may be that the bill eventually makes it through the US political system but there are serious concerns of backroom deals.
The problem is that despite being the largest party the Republicans are struggling to push through one of their key policies. If they can be blocked by opposition politicians on such an important subject then what about real estate, what about the economy and what about the US employment market?
Is confidence in Donald Trump starting to wane?
Only a few days ago the Federal Reserve made a very controversial statement regarding the “hot” US real estate market. The suggestion was that markets were running ahead of themselves and only storing up trouble for the future. This is a very controversial comment from the Federal Reserve amid a suggestion that rising real estate prices put the market at risk of a greater eventual correction.
It is right to say that real estate plays a major role in all economic cycles, both positive and negative, but why talk down the US real estate market when everybody else is talking it up? If, and it is still a big if, Donald Trump is not able to push through his bills with ease then this may plant a seed of doubt in the minds of some real estate investors. Whether any potential short-term correction would be a buying opportunity for those who missed out the first time round is debatable.
Do not write off Donald Trump
Donald Trump has overcome many hurdles in his bid to become president of the USA. Despite the fact he is now president he finds himself being investigated by the FBI and an array of politicians refusing to work with him. History shows that the real estate magnet knows what he’s doing, does not like to be pushed into a corner and will always come out fighting.
Donald Trump certainly has some of his biggest challenges ahead of him with the political elite said to be ganging up on him. It will be interesting to see whether he is able to push through his economic policies and infrastructure investment as they will have a material impact upon the US real estate market. While Donald Trump has not yet delivered on all of his promises, on the flipside of the coin he has not broken any so far.