As Presidential-candidate Donald Trump is now President-Elect, many are fearful for what this could mean for their homes. Whether you trade in exclusive listings and non-MLS placements or you would use the traditional system, it’s likely that the market will see some considerable changes in the months to come.
Although Mr. Trump will not become the President of the United States until January, he is already putting together his new backroom team to lead the country. One area that is expected to be deeply affected by the change from Democrat to Republican, though, is the real estate market.
Forever a market of much change, even outside of non-MLS safety zones, the US real estate market might be in for a small shock in the years to come. To help you prepare, here are some of the most likely predications that President Trump might have on the market.
- Rates will Rise. Given that it’s likely that the economy will see a boom in 2017 (short-term anyway) thanks to government spending and tax cuts rates will probably rise in 2017 for interest, too. Should any form of boom not be sustainable beyond the first half of 2017, though, deficits will continue to rise and it’s likely that more debt will be on the generations to come. As such, it’s going to be vital that home owners make smart, informed decisions about whether to buy on MLS or move to exclusive listing properties instead.
- Dodd-Frank Changes are Here. Some believe that Trump might lift the compliance on smaller banks, reducing costs quite significantly. Given that most homes are funded by these smaller banks the lesser money they need to shell out, the less money they need to ask for from people getting involved. More loans mean more homes, but like anything else in the future Trump presidency we can’t guarantee or even determine how long it could last.
- Exports and Imports May Weaken. It’s expected that both will be hurt in the years to come as trade tariffs will probably shoot up to try and balance out the tipping scale of a trade deficit. This will hurt everyone in the pocket, meaning more recession and more job cuts. As such, being able to work out how to trade your home on the market before either occurs will be of utmost importance to many worried Americans.
- Lending May Normalize. Lending might move back from underwriting mortgages to a more normal lending world, even with credit being quite tight. Unfortunately, Trump seems to have a rather stand-offish voice on the lending market and will likely push for more lawsuits. This is likely to cause many lenders to tighten up again and create a bit of a standoff, hurting consumers.
Not sure if you want to rely on the MLS market to bail you out when any of the above could potentially occur? Then be sure to look more into exclusive listing home sales, when the time comes.