The economy is technically the best it has been in 50 years, unemployment at an all-time low and interest rates are the lowest in years. How long will the good times roll?  Important sectors in the housing market are already seeing significant corrections. New York, Los Angeles, Miami, Boston and Seattle all have down markets. I believe these cities are bellwethers for the whole of the US market. The cities with down markets are generally plugged into finance, media, high-tech and international buyers. The buyers in this market are at an all-time high level of anxiety due to the politics of the executive branch of government. Is China a friend or foe? Will US citizens retain rights they have won of the last 80 years or lose them? Is the US going to expand or contract on the world stage and by extension world trade?

 

Unfortunately, these issues will only amplify in an election year, which is next year. At best prices will hold until May 2020. Afterward, the market will go silent until after the election in November so expect a 6-month pause. Depending on the election results, expect a free-fall if instability wins and holding steady (if not an uptick) if prudence and stability prevail. There are millions of buyers in a wait and see mentality.