What a day as we experienced the inauguration of the 45th president of our great country. Emotions were high and opinions strong as to the varying support for the new leader.
How does this relate to real estate? Change always affects the market, and this one is huge. In reading the expert opinions, here are a few predictions that stand out for 2017:
1) Urban houses will get smaller and developments will be built closer to public transportation.
2) Millennials will be hitting the market in a big way and we'll see more first time homebuyers. The planned FHA mortgage insurance reduction was immediately squashed by the new administration, and would have been a great help to those buyers. Hopefully, it'll be revisited under the current administration, when they'll get the credit for the reduction. There is an ample reserve and this reduction makes good sense to boost home ownership.
3) The housing market will creep up from it's modest 3.6% increase in 2016. Barely. Trump has promised less strict lending policies and time will tell if this offsets his promised interest rate increase.
4) Blue democratic areas (coasts, cities) will decrease in population and red areas will increase in housing and people due to an economic boost in those areas, per election promises. We would all like to see more jobs and we'll keep this on the list as a dream. More people will be driving autos because of this change. (Hello. Climate change, Mr. President. It's 70 degrees today in TN. Perhaps a "global warming" search on Twitter might give a briefing on this important topic.)
5) The president is very pro-home building and had promised a decrease in costly government regulations to builders by over 20%. Other experts note that building costs will go up depending on the anticipated new immigration laws and the impact on laborers.
6) Rental rates will decrease as more move to suburban areas.
In closing, it is predicted the housing market will be steady in 2017. Owning your home is still a good investment and an important symbol in achieving the American dream.
Cheers to your health, prosperity, happiness, and freedom in this new political era!