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How will the new DJT presidency impact the housing market? Should you finalize those homebuying plans or hold off? 🏘️
Here’s the scoop!
Here’s Five Fast Facts on the president and the housing market:
- 📉 Supply Shy - Some say the biggest problem in the housing market today is a lack of supply. Underbuilding was a big problem after the 2008 financial crisis and we’re now really feeling the burn. We’re looking at a shortage of between 2.5 and 7.2 million homes over the last decade.
- 📢 Man with a Plan - During Trump’s campaign, he discussed putting policies in place to make homebuilding easier. He said he will cut back on regulations and offer tax incentives to homebuyers. Trump also talked about freeing up federal land for housing development. However, many home building regulations are controlled at the local level. This could place limits on federal government influence.
- 💸 The Rate Debate - Mortgage rates are still on the rise. As of mid-November 2024, the average 30-year fixed mortgage rate was 6.79%. That’s up 0.07% from the previous week, but down 0.71% from last year. Analysts say rates could drop if the Fed continues to cut rates or if Trump scales back plans to cut taxes and green light tariffs. Mortgage rates could rise if Trump sticks to his plan or the economy strengthens.
- 🏡 Price Check - If you’ve been waiting for the outcome of the election to buy a home, experts say you might want to pull the trigger. Despite who’s in the Oval Office, the home values are expected to increase. If you can afford it, consider buying a home now. You can also refinance for a lower interest rate mortgage down the road.
- ⌚ Short Game - Experts also say the election outcome has a minimal impact over how the market will perform over the next several months. Even if Trump does put some or all of his policies in place, it’s going to take time for all that to happen.
🔥Bottom line: Throughout history, the president has always caught heat for what happens in the economy and the housing market. Instead of using who’s in charge as a sign of what to do next, make decisions based on what’s best for your family and finances. Thinking of buying a home with a friend? Check out our co-buying update!
Got plans to buy your dream home?
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