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How the ‘Trump Bump’ Affects Real Estate

February 8, 2017

The Dow Jones has reached 20,000 and reached the milestone in the fastest 1,000-point jump in history. This event is indicative of a few real estate developments moving forward into the new year. President Trump’s promise to bring back manufacturing jobs and plants back to the country, as well as his corporate tax and regulation policies are positive real estate drivers which continue to attract investors. In addition, the sound economic conditions in the country give cause to have confidence that such conditions will remain true and improve going forward. However, as we have only begun the year it would be wise for investors to be aware of what promises made by the President-elect are kept in regards to policies and the job market, and plan accordingly. REIT’s are deleveraging their portfolios and preparing for this year’s two or three interest rate hikes, NAREIT economist Calvin Shnure shared that interest rates were not anywhere near moderate yet, and they are simply moving from “extremely low” to “very low”.

Dow 20,000: The ‘Trump Bump’ And How It All Affects Real Estate