Whether you like the 2012 presidential election results or not the real question is how it will affect the U.S. housing market…
So what do 4 more year of Obama mean for housing trends?
Where will the most action be and which housing types are going to be hottest?
Whether you have been thinking about buying a home, selling a home, investing in real estate or becoming a real estate agent here are 6 trends which may affect you.
1. Americans in Defense Mode
While the small majority of Americans may be celebrating a personal win this week there are many others who are going to be in panic mode, believing this is the end of their American Dream. They may downsize to help keeping down debt and decide to move to more remote areas in anticipation of worse times ahead. Real estate agents and investors can serve these people if they understand their fear.
2. Security Becoming More Important
Opponents of Obama have said they fear civil uprising and becoming a more inviting target to overseas enemies. This together with more becoming worried about buying a home due to natural disasters and if the economy and employment doesn’t improve will certainly lead to security and safety becoming an increasingly important factor in home buying. This will make reinforced homes and those with storm shelters or panic rooms more in demand.
3. Going Green
President Obama is well known of stating he is focused on renewable energy and solar power. If he follows through his could mean more credits for those building green homes and even more benefits for environmentally friendly communities.
4. More Affordable Housing
We could certainly see much more focus on affordable housing, from the government getting involved in renting REOs to supporting various projects.
5. More Regulation
We should definitely expect to see more regulation in the mortgage and real estate industry over the next 12 to 24 months. This is likely to be a combination of initiatives to protect consumers and recover losses, especially those suffered by Fannie Mae and Freddie Mac. However, while this may make it a safer place for the future in the short term buying a home and borrowing could become more expensive quickly; signaling now is the time to make moves.
6. More Action at the Upper End of the Market
Whether it is a lack of support for small business or taxes on the biggest income earners that is the driving factor, we can probably expect more wealthy and upcoming entrepreneurs moving offshore to protect their money; potentially creating more movement in the luxury home market. This will propel home sales prices, create bargains and deliver sizable commissions to real estate agents and investors.
