Although it’s still early on in the new president’s term, there are already some indicators as to how the real estate market may be affected in the short term. Here are some of the indicators to keep an eye on in the coming months:

• Increased interest rates. Interest rates tend to be inversely proportional to treasuries, which have been going down recently. As rates go up, they cut into the profit margin for real estate investments. For commercial real estate investors, this means that the return on investment (ROI) for property purchases and resales decreases. In short, higher rates are bad news for real estate investors. There are also concerns that the new administration will usher in a period of increased inflation, which would also potentially hurt the commercial real estate market.
• High-end market decline. The higher-end real estate market will likely see more adverse effects as increased interest rates result in a stronger U.S. dollar, which in turn discourages foreign investors from acquiring hard assets here when the market is in such a state of uncertainty. There is also concern that foreign investors will no longer feel welcome investing in properties within U.S. borders if there are changes to the country’s trade policies.
• Middle-income market instability. The mid-range property market will likely see more mixed effects than the high-end market, with geographic location playing a large part in how much of an impact interest rates and uncertainty about the new administration have on local investors. Some economists, such as Ralph McLaughlin at Trulia.com, are predicting that there will be more instability in the markets of blue states than red ones, but there isn’t a historical precedent upon which to base any predictions.
• Federal reserve leadership changes. Although the new administration won’t be able to replace Yellen or Fischer immediately, no one is comfortable predicting who might be appointed to replace either one in 2018, and there are currently two vacancies on the Fed’s board of governors that the President will be able to fill immediately. These staffing choices will have a definite impact on both the Fed and the nationwide lending market.
• Decrease in availability of construction labor. There are many concerns that changes to immigration laws will reduce the size of the construction labor force, while inflation will push labor costs and wages to the point at which sufficient profits cannot be realized, thereby diminishing the construction side of the market that has only just started to recover from the 2008 recession.

It’s still too soon to be certain of how the overall commercial market will respond to this change in leadership; most experts expect to have a better prognosis after the President’s first 100 days in office. However, keeping an eye on the factors indicate which way the market is turning can perhaps help you decide how you want to adapt your investment strategy for the next four years.