November is one of the slowest times of the year for home sales. The results of Tuesday’s presidential election, which Republican candidate Donald Trump won in stunning fashion, aren’t expected to affect the housing market that much in the short term.
The future might be much different. Realtor.com reports that while Trump has been mostly mum on specific policies regarding housing, a 66-page document called the Republican Platform 2016 indicates long-term plans and strategies.
Trump has said that he wanted to reduce the number of tax brackets from seven to three. This could lead to a boost for the luxury housing market but also make it tougher for blue-collar workers to obtain a mortgage.
Republicans also want to get rid of, or substantially shrink, Freddie Mac and Fannie Mae; limit the FHA from providing taxpayer-guaranteed mortgages to wealthy home buyers; repeal the Dodd-Frank Wall Street Reform and Consumer Protection Act; and dispose of the Consumer Financial Protection Bureau, which protects consumers against predatory financial service companies, including ones that provide mortgages.
Unfortunately, no one at realtor.com has a crystal ball to see into the future of residential real estate under America’s new commander in chief. But it doesn’t look like demand from aspiring home buyers will taper off any time soon. The election is “going to absolutely create a short-term uncertainty like Brexit,” says James Harris, one of the star real estate agents on Million Dollar Listing Los Angeles. “But in the long run, I think everything will be fine.”