What to Know About the New U.S. President's Impact on the Housing Market

With Donald Trump now confirmed as the president-elect, many are curious about how his administration could influence the U.S. housing market. While election years often bring a temporary dip in real estate activity as buyers and sellers await results, historical data shows that the election itself rarely has a lasting effect on the market’s core fundamentals. Here’s a breakdown of what to expect in the coming months and years.

Election Years and the Real Estate Market

During an election cycle, there’s typically a minor pause in buying and selling as people wait to see the outcome. However, this trend is typically temporary and doesn't directly affect home prices, inventory levels, or mortgage rates.

If the housing market shifts, it’s usually driven by broader economic conditions already in place before or independently of the election.

President-Elect Trump’s Housing Policies

Donald Trump’s proposed housing policies include efforts to make homeownership more accessible and support real estate growth. Key initiatives on the table may include:

1. Opening Federal Land for Development: Trump has discussed making federal land available for new housing construction, which could help increase the housing supply and potentially ease demand in certain high-cost areas.

2. Support for First-Time Homebuyers: Trump’s platform suggests providing tax incentives to first-time buyers, a measure intended to make homeownership more attainable. This could benefit younger buyers entering the market, though specifics are still to be determined.

3. Reducing Inflation and Mortgage Rates: Trump aims to control inflation, a factor closely tied to mortgage interest rates. If inflation is kept in check, we could see a reduction in mortgage rates, making home loans more affordable and possibly boosting homeownership rates.

Buying or Selling: Should You Wait or Act Now?

Many buyers and sellers wonder if they should hold off on real estate transactions until policies from the new administration take effect. However, experts generally advise that if you're ready to buy or sell, it’s best not to wait.

Any significant policy changes take time to pass through legislation, and the housing market is likely to continue responding primarily to current economic conditions, like interest rates and inflation.

Key Takeaways

• Expect the Market to Return to "Normal" Activity: In areas that have experienced election-year slowdowns, it's best to expect these lulls to be temporary. Otherwise, they may be attributed to external factors aside from the election or newly-elected President.   
• Trump’s Housing Focus: Trump’s administration may prioritize real estate growth through federal land access and tax incentives, but these initiatives will likely take time to enact.
• Market Fundamentals Still Rule: Interest rates, inventory and inflation will remain key drivers of the housing market’s direction.

For now, buyers and sellers should stay focused on their individual needs and financial situations when deciding if they should buy or sell. It's not recommended to wait for potential political changes, as they may face pushback or take a while to make an impact on the market. 

If you're looking to buy or sell a home soon, get in touch with our team to discuss a gameplan. We can help answer your questions regarding the local South Jersey and Philadelphia housing markets and how to navigate next steps in buying or selling a home. Call or text us at 856-264-8671 or send an e-mail to Scott@zhomesrealestate.com to start your home search today! We are here to help every step of the way.