How Will the Election Results Affect the Real Estate Market?
No matter your political views, the resolution of the election means good things for our economic condition. The whole financial world, including the real estate market, can finally take a deep breathe and stop saying, “Let’s wait till after the election.” That day has come, and I think everyone is looking for some stability. I believe either candidate would have provided this stability, but the most important thing is action and quickly. The President is no savior. In fact, it’s the advisors that President elect Obama appoints that we should probably be taking a closer look at when he announces them.
The election elated some and dissappointed others, but no one can discount the fact that there is energy after the election. Perhaps that’s all we needed. As mentioned here before, I feel like the Atlanta real estate market is already feeling the bottom and well positioned to recover. I feel confident in proclaiming that it can only get better from here. Gas prices have come back to earth. Interest rates are caving. In fact, now they are back under 6%. Inventory is coming down, and prices are stabilizing. If you can’t see the neon “Buy Now” sign, then you might want to schedule an appointment with your optometrist.
President elect Obama’s policies will build on plans already set in motion to improve our industry. The bailout is helping to get more money moving in and out of the real estate market with increased liquidity amongst lending institutions. The Fed has cut the rate helping make money less expensive to borrow. This will help us attract more buyers in the form of lower borrowing and mortgage rates as the dust continues to settle, and the bailout will help generate increased competition in the market from lenders. We still need further protection from mounting foreclosures in the real estate market, and I expect we’ll see more money moving in that direction in the form of loans and guarantees to the larger institutional lenders. It’s not just the banks that need help though. What about the homeowners left holding the bag forced to file for bankruptcy due to adjusting adjustable rate mortgages and risky creative financing during the boom years? It would be real easy to say, “Sorry,” and continue the tsunami of foreclosures. We will see more programs designed to help homeowners refinance on the cheap to avoid foreclosure and save their homes. The new President has to address the lender and consumer side of the ball if he wants to fix this housing situation, and I think he will out of neccessity.
So, no matter your political views, we all need to take advantage of this new energy, and take advantage of our opportunities because it doesn’t take incredibly long for a valley to be a peak. This economy will be back. This housing market will be back. As always, we will be here finding deals for buyers and securing the best for our sellers, no matter the market and no matter the President.
