What a Trump Win Means for Real Estate

After the result of the election last week some may be feeling relieved, and others may be more anxious than ever. A lingering question of how the economy will be affected has weighed heavily on the minds of all Americans. Feeling uncertain about the presidential election and how it will affect the real estate market is understandable. Looking at past trends and future predictions will help you make the best choices moving forward during turbulent times. 

Home Sales

Each fall and winter home sales slow down after the busy spring and summer months. Consumers are often nervous about making big decisions just before an election, which could cause a slower November for Real Estate, but things should pick back up in December and into the New Year.

Data from the Department of Housing and Urban Development (HUD) and The National Association of Realtors (NAR) shows that home sales have increased the following year after nine of the eleven elections dating back to 1978. 

Home sales dropped the year following an election in 1980 and 1988 with the election of President Reagan and Bush, respectively. However, since then, home prices have been on the rise each year following an election, and continue to be appreciating assets. 

Home Prices

Home prices will likely be unaffected by the election for the time being, and will continue to rise. In the last eight elections, home prices have risen the following year seven times, with the 2009 recession being the exception. 

Residential appraiser and housing analyst Ryan Lundquist says, “An election year doesn’t alter the price trend that is already happening in the market.” 

In Utah, there is more demand than housing available, and it’s predicted to stay that way for years to come, especially in Utah, Salt Lake, and Washington County. Home prices (and value) are likely to continue to rise for the foreseeable future. 

Interest Rates

We spoke with our trusted Lender this week, Andy Larsen, who explained that interest rates likely aren’t going to fall quickly anytime soon. 

Since the Fed cut interest rates in September, we have seen mortgage rates increase, especially over the last two weeks. 

More than a week before the election, bond investors predicted a Trump victory, selling off mortgage backed bonds to invest in gold and bitcoin, driving rates back to the 6% range. 

With Trump elected, we won’t see meaningful rate movement for at least 30 days, and likely not until he takes office in January. Even when he does, any lower rate movement will take time, potentially years, to get back to the 5% range. 

Outlook 

If you’re considering buying property, now might be a good opportunity to take advantage of the low competition and housing prices before they rise next year. Waiting could cost you more in the long run, even if interest rates start to fall.

If you want to sell, we can help you position your home competitively, so you get the most money possible!

No matter your circumstances, we are here to help! Reach out today to get personalized advice to help you be prepared to buy, sell, or invest. We want to help you put your uncertainty at ease.