“Trump Bump” Explained
Trumponomics in NYC
In the era of “Trumponomics” many people are left confused about what the economy is doing and how to interpret it. The “Trump Bump” is an economic boost attributed to Trump that many republicans were counting on. It is a common misconception that the presidential office holds sway over the economy or the real estate market and people look toward the oval office for market tips. Guessing wrong could cost big for home-sellers, property investors, or renters; then again it may not. This post will provide some clarity as to how to interpret the hype by leaving the “Trump Bump” Explained.
“Tump Bump” Explained – Is Trump to Blame
It is easy to get swept up in the hype of the headlines with journalists shouting the truth to be heard over the noise and news/media headlining anything that’s clickable. It should be worth noting however, that the “Trump Bump” explained here is largely suppositional. The financial markets have seen an uptick post election and while democrats were rightfully skeptical, they may not have been right about Trump negatively affecting the housing markets. Trump stepped into an already mature cycle in the housing market and largely cannot be attributed to any direct market anomalies excepting public perception. Market confidence is the biggest x factor that Trump brought to the table. By most measures that lack of confidence equated to a real estate pause for analysis and a more cautious continuation of what was going on before.
“Trump Bump” Explained – Is There a Bump
Once you get past the assumption of the president influencing the local or regional real estate markets, the logical next step is to figure out what actually happened since election day. Nation wide, the market is trending toward a negative motion for home equity, a negative motion in rental prices, and an uptick in new development. In NYC rental prices went down by just over 2%, condo and coop sales slowed, and new development increased. In general the movements were minor both on the national and local levels. The good news is that the market doesn’t really care what POTUS said to so and so about whatever on Twitter.
“Trump Bump” Explained – What’s the Next Move
If the market was rebounding in 2012 then it makes sense that it would begin to correct again about now. If you are renting start saving for purchase. If you are investing you may want to start shopping for the next buy and hold property, especially if you plan to renovate. If you are selling it’s likely that you would want to sell before a correction and before all those new developments create more inventory in the marketplace.
Is the “Trump Bump” explained as a “Trumponomic” force sweeping through the real estate market either nationally or in NYC? Maybe not but it leaves you free to look at the market objectively and gather the team you need to make your next real estate move with confidence.
Thanks for reading “Trump Bump” Explained. Explore more with us. Reach out to the Cunard Team to ask questions about your next real estate moves or to get more terms and jargon demystified.
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