Whether you love him or hate him, President Donald Trump and his new administration will have an effect on our housing market. What will that effect be? It’s not clear now, but we anticipate a few changes. We’re here to tell you about them today.
First, let’s discuss interest rates. They’ve crept up since the election, but that was predicted by economists for quite some time. Rising rates mean homebuyers won’t be able to afford the same homes they can get right now. Affordability decreases when rates increase.
A lot of people have been getting into the market lately because they want to take advantage of rates where they are at right now, before they go up again. This has caused a surge in home sales. In fact, the Greater Tampa Association of Realtors reported a nearly 20% increase year over year in the number of homes sold. Those are the highest sales numbers we’ve seen in the last decade.
We’ve seen a surge in home sales recently.
Another important change we anticipate with the Trump administration has to do with tax reforms. Some tax benefits that homeowners get now, like the capital gains exclusion and mortgage interest deductions, may be on the chopping block. Nothing is formalized yet, but we are bracing for some of these benefits to be taken away. However, the Trump administration maintains that even if they cut tax benefits for homeowners, the overall lower tax rate will still allow consumers to save.
One positive sign we’ve seen in the market with the new administration has been with the stock market. We’ve hit record highs lately, which has improved consumer confidence. The market is very healthy for the time because of it. There haven’t been any big changes yet, so now might be a good time to consider buying or selling your house before there are.
If you have any questions for us or you’re interested in buying or selling a home, don’t hesitate to give us a call or send us an email. We look forward to hearing from you.