How might the president elect’s policies affect
U.S. Real Estate?
A few day’s ago, Forbes contributor Lawrence Yun hypothesized how a Donald Trump White House may impact homeowners, home sellers and home seekers in terms of interest rates, home listings, purchases, taxes and more. I encourage you to read the article in full, and I’ll highlight a few key points below.
- While the stock market has had a few ups and downs following the unexpected results of the presidential election, the economy will likely see a boost the first half of 2017 as tax cuts are implemented and government spending increases to reflect the new president’s plans for increased infrastructure. Long term, this increase in economic growth will likely contribute to rising interest rates.
- Changes to Dodd-Frank financial regulations may remove cost restrictions currently impacting smaller banks. The result would be greater lending access and an increase in new home building activity. Deregulation does carry the risk of a return to the faulty lending practices that led to the last recession if big banks are allowed the freedom to operate unchecked.
- Regulatory and zoning issues have helped push the cost of newly constructed homes significantly higher than existing homes. Lifting the burden of these regulations would lead to lower purchase prices on new home construction.
- Fannie and Freddie could be on shaky ground. These institutions have made major mistakes in recent history, but have cleaned up their respective acts and are responsible for adding stability to the lending marketplace. This point (#7) of Yun’s article deserves a full read.
Whether you voted to “Make America Great Again” or be “Stronger Together,” this nation is in for a fair bit of change over the next four years. If you are planning to buy, sell or refinance a home for personal or investment purposes, you’ll want to know the lay of the land and work with an expert to minimize negatives and take advantage of every opportunity available to you. I hope you’ll give me a call if I can be of service.
The Meyers Group