In the business of real estate, a combination of forces impact the market and profitability. According to RISMedia's 2019 Power Broker Report, housing-related legislation is less pressing, but concerns exist, and "economic uncertainty" is one of the top two challenges for Power Brokers this year.
Despite only 1.5 percent of Power Brokers challenged by changes to housing legislation, there are those who have been directly impacted by the Tax Cuts and Jobs Act, as well as the overall political undercurrent. Moreover, 8 percent of Power Brokers are being challenged by climbing interest rates, and how consumers are interpreting news out of Washington.
Building Business in Uncertain Times: Power Brokers Sound Off
"Long Island is home to some of the highest property taxes in the nation; it's common to see property taxes in excess of $30,000. With the new limits on SALT deductions, move-up buyers and some upper-tier buyers may rethink taking on homes with higher tax burdens, forcing a decline in sales prices and transaction sides."
– LP Finn, Operating Officer, Coach REALTORS®, No. 198 in sales volume
"Governmental and economic uncertainty is a distraction to the general public. There is a huge business impact when people are uncertain and distracted from their financial goals."
– Ed Forman, President, Watson Realty Corp., No. 27 in transactions
"Government actions change the mood of consumers—positive news, negative news, interest rates up, interest rates down…it all changes consumer decisions. We cannot control government. We stay ready to react quickly to any changes in policy, procedures, rules and laws."
– David MacIntyre, Broker/Owner, Arizona Best Real Estate, No. 995 in sales volume
"As election season warms up, we're concerned that all the negative media involving both political parties will weigh on consumer confidence, initiating a slowdown in the housing cycle, as opposed to the many positives that are occurring in economic growth and job opportunities."
– Michael Mahon, President, First Team Real Estate, No. 25 in sales volume
"Florida is benefiting from the tax law changes, specifically SALT, which is accelerating the move from the Northeast. The drop in interest rates is providing a window for first-time homebuyers to jump into this market."
– Mike Pappas, CEO, The Keyes Company/Illustrated Properties, No. 28 in sales volume
RISMedia's 2019 Power Broker Report is sponsored by American Home Shield, Homes.com, HSA Home Warranty, Leading Real Estate Companies of the World® and Pillar To Post Home Inspectors. The 2019 Power Broker Report ranks brokerages by residential sales volume and transactions in 2018. The complete ranking of the Top 1,000 will be released shortly, along with an interactive online Power Broker directory.