2017 Housing Market
What Does Electing Trump Mean for the 2017 Housing Market?
Mr. Trump started his career in the real estate market, and while to my knowledge, he has not specifically made any claims that he wants to improve the market. There are a few indications that lead me to believe that this is his intent.
In President-elect Donald Trump’s acceptance speech on November 9th, he stated, “We are going to fix our inner cities and rebuild our highways, bridges, tunnels, airports, schools, hospitals. We’re going to rebuild our infrastructure and we will put millions of our people to work as we rebuild it.” If Trump is successful in launching a massive rebuild of infrastructure through the U.S., there will be more job demand, increased wages and ultimately the housing market should benefit.
Trump’s political platform included deregulation of the financial industry in order to revive it. Loosening regulations on lending could conceivably make it easier for consumers to obtain loans. And while the Fed may increase interest rates at some point in the future; in the interim, borrowers will have an interest rate advantage.
Trump told the National Association of Home Builders in August 2016, “There is no industry, other than probably the energy industry that is more over-regulated than the housing industry. 25% of costs to build houses are regulations. I think we should get that down to 2%.” If the cost to build new homes drops, this could mean more affordable homes for consumers and increased demand.
This is one good reason to have your home listed as early as January. What are you waiting for?