A great deal of speculation has arisen regarding the impact of the new presidential administration on key areas such as immigration, taxes, and trade. While some of President Donald Trump’s executive orders are already being implemented, others remain on hold as uncertainties linger.
“It’s difficult to know the impact of Trump’s orders because some of them are more symbolic, some of them will be challenged in the courts, and most of them lack important details of how they’ll be implemented,” said Kevin Thorpe, Chief Economist at Cushman & Wakefield, in a recently released video commentary.
One clear observation, however, was the financial market’s initial positive reaction to the executive orders. “On the day those executive orders were signed, the Dow increased by over 500 points,” Thorpe noted, highlighting additional market activity such as a slight decrease in the 10-year Treasury and a 2% rise in the S&P 500.
Thorpe cautioned against reading too much into a single day of trading and instead referenced key real estate data from Trump’s first term. Specifically:
– Real estate sales volume reached a record high of $606 billion in 2019.
– Property values increased by 18%.
While these figures underscore strong real estate performance during Trump’s initial term, Thorpe warned, “past does not always prologue.” However, he emphasized the resilience of real estate during moments of policy shifts. “It’s important to recognize that property has a long history of proving that it can navigate policy changes and continue to perform well,” Thorpe said, adding, “I suspect that will be the case again.”
This analysis reflects broader market trends and the ability of the real estate sector to adapt amidst political and economic shifts.
About the Publisher:
Steve Griffin is a based in sunny Palm Harbor, Florida. He is an accountant by trade, and owner of GRIFFIN Tax (www.griffintax.com) and REVVED Up Accounting (www.revvedupaccounting.com). Steve is also the founder of Madison Avenue Technology (www.madisonave.tech). He carries a deep passion for commercial real estate and is actively involved in bringing you the daily beat.
