Politics and the Housing Market

Don’t worry. I’ll not be spending any time discussing, critiquing or otherwise devoting time to all that is happening in the world of United States politics.

Well, except for this. We are in a time of great uncertainty. The stock markets soar and fade with every statement issued from Washington, every executive order. Much of the turbulence comes from speculation of what might happen versus the things that already taking place which, in many ways, makes the volatility even more sincere.

For my Canadian readers, who can say which direction the US dollar will go in the coming months as protective tariffs and other concepts are bandied about. For my buyers, rising interest rates seemed like a sure thing with an economy in recovery but there are questions now about how long this recovery could last in a very unpredictable political era.

Housing starts did jump in December to cap the best year the behemoth that is the national housing market has seen since 2007. But there are some indications another banner year in 2017 is unlikely (see: interest rates and general economic uncertainty.)

Here in Phoenix, the housing market seems wonderful for sellers. Quick sales at high percentages of list price still are relatively common. Will it last? That’s the unknown. Affordability is the biggest issue, and if the general cost of living goes up (and not just because of a tequila tariff), there could be fewer buyers able to make the leap.

Hopefully you didn’t come here expecting a crystal ball prediction. Those don’t exist. Just be aware that the world is in flux on many, many different layers and few of us will be untouched.

Jonathan Dalton

Jonathan Dalton is a 40-plus-year resident of the Valley and has been helping folks buy and sell homes since 2004. He can be reached at 602-502-9693 or info at allphoenixrealestate.com.