Publications

- December 2012: Vol. 24 No. 11

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After the Vote: What the Election Means for Real Estate Investors

by Christopher Macke

The ballots have been cast, the confetti has fallen and the campaign commercials have ended, for now. Control of the presidency, the House of Representatives and the Senate did not change. And, as in most things in life, the implications for real estate are a mixed bag.

Single-family home values:Federal Reserve chairman Ben Bernanke’s efforts to reduce interest rates will continue. As a result, low interest rates will continue to support home values. Second, home values will benefit from a continued effort to stem foreclosures. Third, outright elimination of the homeowner mortgage deduction will be an uphill battle. Fourth, current congressional efforts to increase certainty and clarity regarding mortgage warranties will continue reducing one stumbling block to increased mortgage originations.

Retail:The “pauper effect” is the inverse of the “wealth effect.” Namely, when consumers feel like paupers,

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