READING TEA LEAVES

As individuals look forward in the wake of a uniquely charged election, one area of focus (among many) is the new administration’s effect on New York real estate.

No one can predict the future, and a great deal will certainly depend on cabinet appointments and actual policy implementation.  That said, below are some areas to consider that could affect the New York real estate market based upon the information we have thus far:

  • Wall Street: Wall Street has seen some increases following the election, particularly for construction companies such as Caterpillar. Bank shares have also done well with SPDR Financial Select Sector exchange-traded funds reaching their highest point since 2008.  In addition, the proposed loosening of financial regulations could facilitate lending and provide a boost in the near term.
  • Infrastructure: The proposed investment in infrastructure could have a positive effect on New Yorkers’ physical surroundings and the overall housing market if implemented properly.
  • International Purchasers: New York is generally still considered a global safe haven for real estate investment. Notwithstanding, the tone of rhetoric and the administration’s foreign policy, immigration, and trade stances must certainly be closely watched.
  • Taxes: The president-elect has generally proposed a lessening of income taxes (particularly for more affluent individuals), corporate taxes, and perhaps the inheritance tax – all of which should benefit the purchasing power of the luxury New York buyer base. Accordingly we may see an increase in real estate investment.
We appreciate your continued referrals.
Best,
 
Alexander and Sybille