Even though it will take some time before all the votes are counted and confirmed, at this point in time, Joe Biden is the president-elect and is set to be the next president of the United States. What does this mean for the housing market and particularly financing, which is the number one concern for anyone planning to buy or sell a property.
We don’t want to get too much into the complications of the Fannie Mae and Freddie Mac upcoming supreme court case. However, based on historical actions taken by previous democratic administrations we can assume that the focus will be on affordable housing options and keeping financing and loan costs low.
The Biden administration has already pledged investments into affordable, safe and accessible housing that is energy efficient and long-term stable. There have also been talks about first time homebuyer tax credits and a general push for homeownership being possible for most people.
It is difficult to predict exactly what will happen since a cash influx in housing creation will help the housing shortage which in turn should help lower housing prices, however, this is a slow process. It will be years before the big supply and demand gap is narrowed.
In the short term, a movement towards a renter nation is more likely, however, will these renters transition back to wanting to buy a home?
Millennials have time and time again been known to find a 30-year mortgage unappealing since they settle down and have children much later in life, compared to their parents. The idea of paying off a mortgage well into your 70s and 80s is daunting, especially to the first generation to have less financial stability than the generation that came before them.
The future of real estate has many bright spots and many unknowns, which is likely furthering the current boom in activity while the rates are low, the prices are creeping up, and the pandemic has caused a need for more space and comfort at home.
It is difficult to predict how a push for big investments in housing creation will go since the timelines are hard to predict in construction, however, real estate professionals like Amin Vali and investors as well can confirm one thing, something tangible like real estate will always have value, what you decide to do with that value can make the difference.
Civil Engineer, MBA, Real Estate Agent
Amin Vali Real Estate Inc.
Persian Realtor,Persian Real Estate,
Cell phone: +1 (949)220-1000
Phone : +1(310)300-0011
Web : http://www.aminvali.com
E-mail : email@example.com
Realtor in Zutila Inc.