The 2024 presidential race is looming large on the horizon, with Americans eagerly anticipating the outcome and its potential impact on various sectors, including the U.S. real estate market. As the election draws nearer, experts and economists are weighing in on what a second term under Donald Trump could mean for the housing market in the United States.
One key aspect that experts are predicting is a potential boom in refinancing and home sales if Trump were to win the election. Marty Harlee, president and CEO at First Trust Financial, believes that a Trump presidency would likely lead to a recommendation to lower interest rates by the Federal Reserve. This move could stimulate economic growth and have a positive ripple effect on various industries, including real estate, car sales, and refinancing.
Furthermore, the emphasis on deregulation and tax cuts under a Trump administration could potentially stimulate economic growth and increase disposable income for many Americans. Dennis Shirshikov, a professor of finance, economics, and accounting at the City University of New York, suggests that these policies could lead to an increase in demand for homes, thereby boosting the housing market.
However, there are also concerns about the potential negative impacts of reelecting Trump on the real estate market. Harlee points out that while lower interest rates could initially benefit the housing market, they could also lead to an increase in housing prices and a decrease in available inventory. Additionally, inflationary pressures resulting from deregulation and tax cuts could prompt the Federal Reserve to raise interest rates, making mortgages more expensive and reducing housing affordability.
Kateryna Odarchenko, a political strategist and real estate licensee in Maryland, highlights the importance of affordable housing programs and the impact of housing accessibility on Americans. She believes that the housing policies proposed by Trump, such as increasing homeownership rates and introducing tax reforms, could have positive implications for the market.
Overall, the potential outcomes of a second term under Donald Trump for the U.S. housing market are mixed. While lower interest rates and tax cuts could stimulate economic growth and increase demand for homes, there are concerns about inflationary pressures and market volatility. The housing policies proposed by Trump could have a significant impact on housing affordability and accessibility, making them crucial factors for voters to consider in the upcoming election.