Hi y’all, welcome!

Let’s do an election recap and explain how this Presidency will impact you.

Inside: President Trumps Housing Impact TLDR + Another Rate Cut ✂️ 

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(*unbiased opinion)

WHAT'S INSIDE

• 🚨 WHAT THE TRUMP PRESIDENCY MEANS FOR THE HOUSING …

• 🤠 THE DATA

• 🇺🇸 WHAT THIS MEANS FOR YOU

🚨 WHAT THE TRUMP PRESIDENCY MEANS FOR THE HOUSING MARKET 🚨

*I’ll keep this to the facts:

Unaffordable housing was registered voters' second-biggest concern about the U.S. economy in an August.

President-elect Trump thinks there are 3 core problems plaguing the housing market:

1) Problem: Rising home prices

President Trump and VP Vance have said competition from illegal immigrants is “one of the most significant drivers of home prices in the U.S.”

Proposed Solution: Trump has promised to carry out “the largest deportation operation in American history” with “no price tag.” This will allegedly reduce demand and decrease housing prices.

2) Problem: Regulations and permits add to build costs/slow timelines and drive up home prices

Proposed Solution: “Eliminate regulations that drive up housing costs with the goal of cutting the cost of a new home in half. We think we can do that. Regulation costs 30% of a new home” - President Trump

*The National Association of Home Builders estimates that regulation fees (site work and related permit fees) account for only 7.4% of the average new home cost.

3) Problem: High interest rates

"Reducing mortgage rates is a big factor. We’re going to get them to back down to, we think, 3%, maybe even lower than that, saving the average homebuyer thousands of dollars per year.” - President Trump

Proposed Solution: Unclear. By design, the Federal Reserve is an independent entity. They are siloed from political pressure so they can make decisions irrespective of “popular” demands.

Jerome Powell's term as chairman expires in 2026. This could give President Trump an opportunity to appoint a more amiable successor. Powell was actually appointed by Trump in 2018 but their relationship soured. Trump has since shared that he believes the Fed should take orders from the President instead of operating independently. Powell has stated he will not resign if requested to do so by the President-elect.

That was a lot. As we know - campaign promises don’t always materialize. We will continue to monitor this space 👀 

Quick hello!
I’m an ex-dentist turned Realtor - let’s work together! Email me, tweet me or send me a carrier pigeon. 🐦️ 

🤠 THE DATA

Yesterday’s rate cut might have just snuck by you. Here’s what you need to know:

1) Interest rates cut by another quarter point

2) The Fed expects to continue rate cuts but the timeline is unclear

3) Jerome Powell emphasized that the path of rate cuts will not react to expectations of President-elect Trumps policy plans

Read more here.

🇺🇸 WHAT THIS MEANS FOR YOU

Historically, Presidential elections have only had a small, temporary impact on the housing market. There is typically a slight decrease in home sales in November and a bounce back in December.

This is a helpful graphic - home prices went up after 7 of the last 8 presidential elections. This increase has more to do with existing housing trends than the election itself. Prices that increased post-election were already trending up and prices that decreased in 2009 were already trending down.

Lot’s of election related coverage today. TLDR - history tells us, it’s going to be okay. Real estate is one of the most stable assets over the long term. If you have any questions - I’d love to chat!

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