What Does a Trump Presidency Mean to the Housing Market?
Well, we, the people have spoken and Donald J. Trump was elected as the 45th president of the United States
Change was demanded from the rural areas and that is what we will have. It was unexpected by even his campaign team! But it was a bit of a shock for many, especially on the West Coast. In our area, we have not actually experienced much in the way of job losses in US manufacturing. Nor have we had a lack of wage growth. So, what all does this mean for the housing market? Should you hurry up to buy before interest rates start rising? Or wait to see if the home values decline, if they do? What should we do?
First, we should all take a deep breath
The US equity markets are starting to calm down as the meaning of a Trump presidency unfolds. As for what this means to the housing market, it’s too early to make any predictions. But, Trump ran on a platform of deregulation, which could be good for real estate. Banks may have the freedom to offer more loan products, which in turn, could further energize the market as more buyers may qualify for home loans. As for the interest rates… well, the concerns over rising interest rates may be overstated, but we are already seeing them rise. Watching the bond market closely will be prudent. Although, the experts are still hopeful that the increases will cap at less than 5% by the end of 2017.
Trump proposed more infrastructure spending, which if it comes to light, this could boost employment and wages
Another positive for the housing markets. The proposed easing of land use regulations, may begin addressing the problem of housing affordability, which is a huge issue in California housing markets. The new construction industry is reporting only 40% staffed with tradesmen. When the recession hit, many of those workers went on to new careers, leaving a huge gap in available skilled workers. This new construction is critical to the Sacramento Real Estate Market, to relieve the low inventory issues and support a normal home value increase.
In the near-term we may see some temporary upheaval, including in the housing market, as the Trump presidency takes shape
But, for right now, there isn’t any need for panic in the housing sector. The Sacramento Housing Market should continue to be in good shape for the near future. FHA Home Loans are continuing to provide low down payment options, as are the VA Home Loans.