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How is the new president going to effect Real Estate?

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Real Estate Agent with Coldwell Banker Realty/Coldwell Banker Commercial NRT 30SA0872839 

How is the new president going to effect Real Estate?

 

The impact of a new president on real estate depends on their policies and priorities, particularly regarding the economy, taxation, housing, and infrastructure. While the specific effects will vary, here are some key areas to watch:

1. Interest Rates and Monetary Policy

  • Indirect Influence: Presidents don't set interest rates directly, but their policies can influence the economy, which affects the Federal Reserve's decisions. If policies promote economic growth, inflation may rise, potentially leading to higher interest rates.
  • Housing Affordability: Higher interest rates increase borrowing costs, which can reduce affordability and cool housing markets.

2. Housing Affordability and Supply

  • If the administration prioritizes affordable housing, there might be incentives for developers to build lower-cost housing or increased funding for public housing projects.
  • Efforts to address zoning restrictions could help boost housing supply, impacting property values and inventory.

3. Tax Policies

  • Capital Gains Taxes: Changes to capital gains taxes could affect investment in real estate. For example, higher taxes might deter property flipping or speculative investment.
  • Mortgage Interest Deduction: Reforms to this popular deduction could alter homeownership incentives.
  • 1031 Exchange Rules: Modifications to these rules could impact the ability of investors to defer taxes when reinvesting in similar properties.

4. Environmental Policies

  • Stricter regulations on building practices and land use might raise costs for developers.
  • Incentives for green building and energy-efficient homes could increase demand for eco-friendly real estate.

5. Infrastructure Spending

  • Investment in infrastructure can enhance real estate markets by improving accessibility and boosting property values in targeted areas.

6. Investor Confidence

  • A president's ability to maintain economic stability affects market confidence. Uncertainty or instability might slow investment in real estate.

7. Renters vs. Owners

  • Policies favoring renters, such as rent control or tenant protections, could affect landlord profitability and influence investor decisions.
Show All Comments Sort:
Lew Corcoran
Better Living Real Estate, LLC - East Bridgewater, MA
Expert guidance. Exceptional results.

Thanks, Thomas Santore Lic Associate Real Estate Broker, for your insightful look at the potential effects of presidential policies on real estate! Your clear breakdown of the various factors at play really helps us navigate this complex landscape, and I appreciate your thoughtful perspective!

Jan 20, 2025 02:16 PM
Thomas Santore Lic Associate Real Estate Broker

Thank you,

Tom S

Jan 20, 2025 03:24 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good evening Thomas,

I guess time will tell! New polices will be made and are being made as I write this. God Bless America!

Jan 20, 2025 06:25 PM
Thomas Santore Lic Associate Real Estate Broker

Thank you,

Tom S

Jan 21, 2025 08:42 AM
John Pusa
Glendale, CA

Hello Thomas Santore Lic Associate Real Estate Broker very good helpful report for how is the new president going to effect real estate.

Jan 20, 2025 08:23 PM
Thomas Santore Lic Associate Real Estate Broker

Thank you,

Tom S

Jan 21, 2025 08:42 AM
Alan May
Jameson Sotheby's International Realty - Evanston, IL
Home again, home again...

Only time will tell on how the new president will affect real estate.

Jan 21, 2025 01:05 AM
Thomas Santore Lic Associate Real Estate Broker

Thank you,

Tom S

Jan 21, 2025 08:41 AM
Mark Don McInnes, Sandpoint-Idaho
Sandpoint Realty LLC - Sandpoint, ID
North Idaho Real Estate - 208-255.6227

Going to be an interesting year ahead as we settle in with the new President.  As is usually the case.  m

Jan 21, 2025 02:17 AM
Thomas Santore Lic Associate Real Estate Broker

Thank you,

Tom S

Jan 21, 2025 08:41 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Thomas - I join in the chorus that time will tell.  Good luck.  Obviously, it's a big job.   

Jan 21, 2025 04:41 AM
Thomas Santore Lic Associate Real Estate Broker

Thank you,

Tom S

Jan 21, 2025 08:41 AM