With Donald Trump starting his second term as president, many people are wondering how his plans might affect the real estate market. Whether you’re thinking about buying your first home or refinancing your current mortgage, it’s important to understand what might happen in the next few years. Here’s a breakdown of what we might see in the housing market under his leadership.

Lower Taxes for Investors

President Trump’s administration is known for supporting businesses, which could lead to changes in taxes. This might be good news for people who invest in real estate. If taxes are lowered for people who own rental properties or other real estate, they could make more money. These changes might even encourage people to buy more homes and invest in real estate, which could lead to more homes available for buyers.

Fewer Rules for Builders

Trump has also been a big supporter of cutting down on rules and regulations that businesses have to follow. This could make it easier for builders to build new homes. If there are fewer rules to follow, more homes might be built, especially in areas outside of big cities. However, if some safety rules are changed, it could mean that the quality of new homes might not be as good as before. If you're planning to buy a new home, it’s important to make sure the house is safe and well-built.

Better Roads and Public Services

The new administration might invest more money in improving roads, bridges, and public services. This could make some areas more attractive for people to live in. As new roads and transportation systems are built, home prices could go up in areas that become easier to get to. So, if you are buying a home, you might find that places with better infrastructure could become more popular and valuable.

Interest Rates and Borrowing Money

Right now, borrowing money to buy a home, called a mortgage, can be expensive because interest rates are high. Mortgage rates are expected to stay high, around 7%, for the next few years. This means that if you’re looking to buy a home, you might have to pay more each month than if the rates were lower. People who want to refinance their homes (or change their mortgage to get a better deal) might also have to pay higher interest rates.

More Expensive Building Materials

Another thing that might happen is that tariffs (taxes on things from other countries) could go up. This could make building materials, like wood and cement, more expensive. If it costs more to build houses, homebuilders might charge more for the houses they build. This could make new homes more expensive for buyers, which might make it harder to find a good deal.

What Does This All Mean for You?

• Higher Prices: Because of higher building costs and fewer rules, new homes might cost more, making it harder for buyers to find an affordable house.

• Higher Mortgage Rates: If interest rates stay high, you might have to pay more each month if you're buying a home. If you're refinancing, it could also be harder to get a lower payment.

• Opportunities for Investors: People who invest in real estate might find new chances to make money if there are lower taxes and more building happening. If you're thinking about investing in real estate, this could be a good time.

Conclusion

There are both good and bad things to expect in the real estate market under the new administration. While there might be lower taxes for investors and new homes being built, higher mortgage rates and rising prices could make it harder for buyers. If you're looking to buy a home or refinance, it’s important to stay updated on what’s happening in the market so you can make the best decision.