I've had a number of people asking my opinion about the new year and what it means for the economy and real estate. Since I'm always happy to give my opinion, here it is: It feels like more people are positive about the economy with the new President elect and Republican Congress. I hear more optimism than I have heard in a long time, and it seems like people are looking to put money to work, possibly in different ways than usual. Purse strings are being loosened and since the Crested Butte real estate market is all about disposable income, it seems like people are more willing to consider spending that money on second homes or investment properties.
The economic reality is that the policies we know the new administration is considering are all about domestic economic growth, less mandated spending, a stronger dollar and inflation coming back, along with higher interest rates. Higher interest rates are not good for real estate generally, but in this case, since we have had abnormally low interest rates for such an extended period of time, seeing them rise, along with inflation, isn't a bad thing. Inflation will make house values rise, and with the lack of spec building for the past many years (though people are building for themselves, many fewer homes have been built without an already identified buyer) we are still in a seller's market.
The Affordable Care Act likely being overturned is good for small business owners, and for independent contractors, like me, especially in our remote area. I think people see that there will be less expensive, and unmandated, health care options in the near future and that is a cause for relief. More competition in this realm will also help, and being able to pick a policy that you want will be great too. In Crested Butte we currently have 1 insurance company serving the valley under Obamacare. More options and hopefully, interstate competition create more competition here, and likely, lower rates.
So, all in all, I'm pretty bullish for 2017. We certainly will have some issues to figure out, but I think economic growth will happen nationally, and I'm all for that. Repatriation of corporate profits from overseas will also spur growth here and kick-start the currently sluggish economy. People are feeling better about the future, and that leads to more investment, which works for me!
Happy 2017!
The economic reality is that the policies we know the new administration is considering are all about domestic economic growth, less mandated spending, a stronger dollar and inflation coming back, along with higher interest rates. Higher interest rates are not good for real estate generally, but in this case, since we have had abnormally low interest rates for such an extended period of time, seeing them rise, along with inflation, isn't a bad thing. Inflation will make house values rise, and with the lack of spec building for the past many years (though people are building for themselves, many fewer homes have been built without an already identified buyer) we are still in a seller's market.
The Affordable Care Act likely being overturned is good for small business owners, and for independent contractors, like me, especially in our remote area. I think people see that there will be less expensive, and unmandated, health care options in the near future and that is a cause for relief. More competition in this realm will also help, and being able to pick a policy that you want will be great too. In Crested Butte we currently have 1 insurance company serving the valley under Obamacare. More options and hopefully, interstate competition create more competition here, and likely, lower rates.
So, all in all, I'm pretty bullish for 2017. We certainly will have some issues to figure out, but I think economic growth will happen nationally, and I'm all for that. Repatriation of corporate profits from overseas will also spur growth here and kick-start the currently sluggish economy. People are feeling better about the future, and that leads to more investment, which works for me!
Happy 2017!
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