In the months leading up to the election, New York real estate agents witnessed a significant shift in buyer behavior due to uncertainty over who would ultimately win the Presidential race. Some buyers even sought to include a clause in their contract that if Donald Trump was elected, they would have the option to cancel the sales contract.
In the days following the election, real estate agents experienced cancelled viewings and delayed contracts. However, once the dust settled, deals were completed and some concerns set to rest.
Key Factors in Support of New York Real Estate
In the wake of the election though, the New York real estate community is divided. Many real estate professionals are hoping that a Trump Presidency will be advantageous to businesses and create a positive environment for commercial real estate deals. One of the key factors in bolstering the real estate market is the proposed tax breaks for the wealthiest Americans, which could in turn boost the luxury housing market, which has been languishing in recent years.
Other factors that may positively influence the New York real estate market include reduced regulation by the government and infrastructure improvements. Both of these factors would invigorate business and create jobs, which in turn, stimulates additional development.
Along with promises of decreased government regulation, which includes proposals by Trump to dismantle the Dodd-Frank reforms, comes fear of another sub-prime mortgage crisis. While more hopeful homeowners may be approved for mortgages, thereby stimulating the New York housing market, these same homeowners may find themselves in a crisis similar to the 2008 financial crisis.
The End to Affordable Housing?
Advocates of affordable housing have expressed deep concerns that Trump’s proposed policy overhauls will jeopardize federal housing programs such as Section 8 housing and legal assistance for low-income Americans. They also worry that discrimination in housing will increase as enforcement of the Fair Housing Act provisions are discretionarily enforced. Without these protections in place, more Americans may be unable to find housing, which may increase the rate of homelessness and crime. These factors can produce a negative effect on the markets of those neighborhoods where crime and homelessness are at their worst.
An Unwelcome Mat
One of the key themes in Trump’s election campaign is the mass deportation of Muslims and undocumented immigrants. Some real estate professionals fear that these policies may stifle international investments in real estate as the U.S. becomes less welcoming to foreigners.
Concerned About New York Real Estate Under the Trump Administration?
These are uncertain times for New York and the country as a whole. Whether you are considering buying or selling residential real estate in New York, it makes sense to seek the advice of experienced New York real estate attorneys. Ianniello Anderson, P.C. provides informed advice for buyers and sellers in the New York real estate market. Serving clients in the Albany, Clifton Park, Glens Falls, Saratoga Springs, Troy, and the entire Northeastern NY areas at 518.350.7755.