With a vested interest, surely Donald Trump must be good for the US real estate market in the longer term? While I appreciate much of the movement in the future will revolve around the economy, Donald Trump is an expert in real estate.
One thing about the US real estate market that many here don't realize is that it tends to be every bit as volatile as the stock markets. The only reason it doesn't seem such to many who don't realize this is because they don't get a real estate statement every month - showing the fluctuations in values of their homes and commercial properties - the way they would with stock, bond, and commodity "paper" investments.
Fair comment JR - it is probably more volatile now that it ever has been due to the growing number of short term traders, flippers, whatever you want to call them. Those in it for a quick buck. However people forget that short term traders in the real estate market ensure much needed liquidity.
I see Trump now says he will step away from his business interests but wont say how - do we really believe him?
Yes, liquidity is a good thing. My particular area was largely spared from much of the real estate crash of '08 - we had an unusual commercial construction boom (casinos, oil & gas refineries, etc) - plus number of hurricanes over several years going back from late '05 that seemed to keep property values fairly well stabilized. But one thing I've noticed about many people I've talked to over the years is that many of them are often reluctant to buy much in the way of stocks, bonds, mutual funds, etc - in favor of real estate. Their somewhat flawed reasoning is usually centered around their belief that they can "control" their own personal real estate investments better than "paper" investments.
If you pick the right areas and there is long term growth in the population and employment opportunities, surely property prices can only move higher in the longer term? Not as easy to find these areas as people think but the average long term trend for property has to be higher surely?
Yeah, I think that in the long term that both real estate and stocks of good companies are both smart investments. In the short term, both can be volatile - although it's usually much more apparent with stocks, because you are constantly reminded of their prices and fluctuations. With real estate, you really don't know how in-demand the property you own or have your eye on is until you try to buy, sell, or rent it.
