Elections Impact to the Real Estate Market
Elections Impact on the Real Estate Market
In the wake of a highly contentious presidential election and major shifts in political power, many are left wondering how the results will impact various sectors of the economy, including the real estate market. With Donald Trump set to become the 47th president of the United States, and Republicans regaining majority control of the Senate (house of representatives race is too close to call), there are certainly many factors at play that could influence the housing market in the coming months and years.
Tax Cuts
One of the key ways in which a presidential election can impact the real estate market is through changes in economic policy. Depending on the candidate's platform, policies related to taxes, regulation, and government spending can all have a significant effect on the housing market. For example, if President Trump implements tax cuts for individuals and businesses, this could lead to increased consumer confidence and spending, which could in turn drive demand for homes.
What About the Senate?
In addition to the presidency, control of the Senate can also have a major impact on the real estate market. With Republicans now holding the majority in the Senate, there may be potential for more pro-business policies to be passed, which could benefit the housing market. This could include measures to reduce regulation, stimulate economic growth, and support industries that are closely tied to real estate, such as construction and finance.
Mortgage Interest Rates
Trump’s proposed Tariff on Imports, coupled with possible mass deportations, will create price inflationary pressure to the US consumer due to higher cost for all goods imported (impacting raw materials and finished goods) and higher labor cost to produce goods.
As a result higher inflation, the Federal Reserve might pause or stop the 2025 outlook (as of October 2024) of four .25% point expected rate cuts. Some experts are projecting the possibility of rate increases should the Fed maintain the 2% inflation target normalization.
The Housing Market Outlook
The principles of Supply and Demand still apply when entering (buying) or planning to exit (selling) the housing market.
Inventory levels and Days listed along with Price affordability are key determinants for a buyer entering the housing market at the lowest price the market would bear. We can start by obtaining a FREE Market Report.
On the other hand, in a high inventory environment while enduring high number of Days Listed, Sellers are likely to be more flexible with commission and List Price discounting.
What’s your Mortgage Monthly Payment Budget? Generate Pricing scenarios fitting your monthly payment budget high & low range by using OsvAna Realty mortgage calculator.
Contact OsvAna Real Estate Consultants today and get a FREE Market Report.
