Over the last few weeks we have seen a number of US housing company share prices rising significantly on hopes that the US economy is firmly in recovery mode and the US real estate market will follow. What is your opinion and experience of the US real estate market at the moment? Do you feel the recovery or will any potential recovery be short lived as a consequence of inevitable rises in US interest rates?
There were some very good GDP figures in the US this week which would seem to indicate a relatively strong economy. As we all know, strong economies breed strong property markets. Does anyone have any on the ground experience of US real estate?
Donald Trump has improved the tax situation for real estate investors which together with relatively low interest rates has led to an increase in real estate prices. However, at some stage interest rates will increase which will chock the flow of cheap finance and might slow down the ongoing improvement in prices. This will not be a bad thing as a gradual increase is much preferred than the boom and bust scenarios we have seen in the past. Cycles which led to DT going bankrupt on more than one occassion if my memory serves me correctly?
