While Donald J. Trump’s victory in the U.S. presidential election initially led to some stock market unrest, it quickly smoothed out and UK real estate experts say they believe the luxury real estate market will benefit from having the real estate mogul installed at 1600 Penn Ave.
Donald Trump has been lauded from Britain, and trade relations are expected to improve under the Trump administration. As the Trump win brings a property industry leader into the White House for the first time in American history, expectations are high for a pro-property owner and investor state of affairs. Luxury real estate markets in the US and abroad expect to see improvement.
Since the UK’s own wind change of Brexit, there’s been an spike of American buyers in London’s Mayfair and West End neighborhoods. Many hope the depreciated pound will lead to strengthened trade relations with the U.S. and better trade deals. In the meantime, UK buyers have shown increased interest in luxury home markets in Los Angeles, Miami, and New York.
Stock futures that dipped stabilized Wednesday afternoon, closing with the Dow Jones industrial average up more than 250 points, S&P closing at 2,163.26, and the Nasdaq, more than 1% higher. Infrastructure based stocks such as Caterpillar went up by an impressive 7.7%. The dollar bounced nicely against currencies such as the euro and yen, while the pound crept up a notch – another good sign for UK / U.S. relations.
In real estate luxury areas like Miami, the price per square foot is less than $1,000, with high value to real estate property ratios. Wednesday’s real estate market in the UK rolled along nicely, despite dire predictions of a dip, and the US real estate market is predicted to follow suit. The uncertainty of election season gave way to clarity with a winner.
Economically stagnant red states are expected to see a sharp uptick in home sales interest, with markets like Dallas and Salt Lake City prime for a housing boom. James Gaines, chief economist at the Real Estate Center at Texas A&M University, says he hopes an interest rate hike will not happen in December, setting up 2017 for a great year.
Others point to the new administration led by a real estate mogul as a great boon to the industry and an end to ridiculous regulations. Overall, the Trump presidency is expected to be positive for real estate markets from New York to LA and across the pond in the UK , France, and even Germany and Japan.