Experts: Trump could have positive effect on West Palm Beach real estate market

As real estate mogul turned President-elect Donald Trump gets set to take office, South Florida real estate experts are hoping for big things to happen in the local West Palm Beach area housing market.

Housing tends to follow the overall economy, say experts. When people feel optimistic about their jobs and the economy they are more willing to take on the added debt of purchasing a home.

A Trump administration, according to the candidate’s campaign promises, would focus on job creation, infrastructure construction, and deregulation. These are all good things for the housing market.

“A key ingredient for a healthy housing market is always a healthy economy,” says Jay Sorgen, a realtor with Keller Williams in Palm Beach County.

“If Trump is able to provide an economic boost by creating jobs and increasing construction, that will trickle down to the market here is South Florida. Not only will people feel more comfortable making a major purchase like a new home, but we might also see an increase in new inventory as builders’ economic confidence also rises,” said Sorgen.

According to published reports, the average Palm Beach County single family home costs $316,000. That’s about 40 percent higher than four years ago when real estate values were at their lowest.

But Sorgen warns there might be one factor that keeps the local real estate market in check.

“We’ve already seen the Federal Reserve is signaling an increase in interest rates may be coming. That always has a cooling effect, but I am still optimistic about the market here.”