Whether or not you, as a voter, were satisfied with the outcome of the presidential election, every future home-buyer can be satisfied with the expectations of President Trump’s effect on the housing market.
Now that 2017 is upon us, and with that, a new year, new adventures and new investments to make. For some, this will mean buying a new home. If President Trump’s promises hold true, now seems like the perfect time to do so.
What Trump brings to the table
Let’s examine his experience. Trump has a history in the real estate market and has been quite successful in multiple business ventures. He knows what it takes to prosper in real estate and in business, and has articulated his views on the extensive government regulations in both areas.
Because of Trump’s background, we will likely see a positive change in both the economy and the housing market, which, for many, leaves us in an optimistic wait.
His plans for the housing market
Trump has strong opinions about the changes needed in the housing market. He has commented, “There’s no industry, other than probably the energy industry, that is more overregulated than the housing industry … Twenty-five percent of costs to build a house are regulations. I think we should get that down to 2 percent.”
He has also stated, “ Regulations and regulatory is going through the roof. It’s almost impossible to get anything done in this country.” Again, President Trump has shown his distaste for those government regulations that drive prices higher. This effect is most evident in the housing sector.
Decreasing regulations in the housing industry could significantly cut down on the cost of building new homes and fees associated with purchasing existing ones. If regulations are reduced, like President Trump is proposing, buying or building a home may be a new possibility to many who were previously unable.
Will it be easy to get a loan?
As of right now, there is no clear evidence of whether or not loan eligibility will improve, but if President Trump is able cut guarantee fees for Fannie May or Freddie Mac, or if he is able to increase eligibility for FHA loans, then we could see more and more people able to receive a loan for buying a home.
Though no one can be exactly certain of what Trump’s effect will be on the housing market and industry; we can, however, be optimistic for this coming year. Trump intends to make changes when he takes office, and those changes, as of right now, seem to favor growth in the housing sector.