According to Business Insider, predictions about the housing market during Donald Trump’s time in office are split along party lines. Surveys have shown that, generally speaking, left-leaning consumers in blue states are feeling pessimistic about the near future of real estate. Conservatives in red states, however, are more confident and more likely to make large purchases and investments.
Overall, the global economy has smiled on the brand new Trump administration so far, and since the global market is like a Hogwarts to the U.S. real estate market’s Hufflepuff, the positive effects in the housing market are holding steady so far.
Experts are careful to note that the president doesn’t exactly control the housing market: that several other factors are at play, especially the overall lack of inventory. Mortgage rates have already gone up in the first months of Trump’s presidency, and they will likely continue to rise, along with home prices. But construction is expected to increase over the next few years to meet the growing demand for homes. That could plateau prices as more new homes are built to meet the demand.
The economy in general, though, has been strong so far. On the night of the election, global economies took a downward swing before recovering. Since then, the Dow Jones Industrial Average has reached historic highs, as high as 21,115 points in early March. It’s impossible to predict whether the market will continue to climb, but the link between the global economy and the U.S. housing market, including interest rates and property values, has always been clear.