President-Elect Donald Trump will take office January 2017. There is much anticipation about how his presidency will change policies such as immigration and taxes and the impact it will have on trade and international relations. An article published on Realtor.com by Clare Trapasso addresses questions home owners, home buyers, mortgage brokers and real estate agent might have about how Trump’s presidency will affect the real estate market.
It isn’t anticipated that the real estate market will be immediately impacted by the election results; November usually sees less activity in the real estate market anyway. The bigger question is how will Trump’s proposed changes to the federal government level of involvement in the real estate market impact the real estate market into 2017 and beyond.
Experts anticipate, based on Trump’s proposed reforms, buyers may need to have a larger down payment and possibly end up securing a higher interest rate than what has been available over the past several months. According to Bob Edelstein, co-chair of the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley, “The heart of Republican support—blue-collar, middle-aged workers—are the people who will [be affected] the most. It may be harder to get mortgages, and those that will be available will be less advantageous.” On the bright side, the tax cuts promised by Trump, could afford home buyers more money to spend on a new home.
President-Elect Trump has vowed to limit government’s role in overseeing financial institutions by repealing or modifying the Dodd-Frank Wall Street Reform and Consumer Protection Act as well as the Consumer Financial Protection Bureau. According to Republican Platform 2016, “regulatory harassment of local and regional banks, the source of most home mortgages and small business loans, advantages big banks and makes it harder for Americans to buy a home”.
Uncertainty, debates and prediction discussions will continue among experts and consumers; in the end, however, only time will tell.
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