Inauguration Madness:  What a New Administration Really Means for Your Home Purchase or Sale


We admit, while we’ve avoided working it into our regular informational articles thus far, the story of the year (and last too if we’re being honest) is the election of a new president and the ensuing appointees, cabinet members and staff.  While the executive branch is only one of three, and limited by a sophisticated set of checks and balances, there are a few ways that a new administration could potentially impact that potential real estate transaction you were thinking of getting involved in this year.  If you’ve been wondering how a new face in the White House will affect your home sale or purchase, read on.  We’ve got the low down on all the questions you didn’t know you wanted to ask about inauguration day and real estate.

Interest Rate Bonanza

If you’ve been paying attention to the mortgage market recently in hopes of gauging whether it will be a good time to buy or sell, you know that that important little percentage has been ticking up since the election results rolled in.  Short term, fewer homeowners have an incentive to refinance existing homes.  For new home purchases and long term, while the current rate hike isn’t substantial YET, signs are trending to more rate hikes as early as later this year.

HUD and Housing Trends

Another area where the new president can impact the housing market is with his choice of nominee for heading the Department of Housing and Urban Development.  HUD is responsible for maintain lending standards and for developing programs to encourage home buying and revitalization of areas still recovering from the impact of the mortgage crisis in years past.  This may not directly impact your bottom line with it comes to an individual real estate purchase, but a change in allocation of funds could see gradual but big impacts in the way certain markets recover or in purchase incentives.

Market Uncertainty or Confidence

Perhaps the most immediate and largest impact buyers and sellers will see on the housing market will come from a lack of certainty regarding the economy and jobs and what that means for potential relocation or housing affordability.  Higher stock prices mean larger companies can afford to increase pay, hire more employees or expand operations.  On paper, this if part of the “trickle down” effect that you often hear experts debating on national news and financial programs.

While the concept of swings in stock numbers, consumer confidence and spending and employee hiring during an administration change isn’t a new one, this election cycle has been particularly chaotic in its movement and unprecedented in result.  Analysts originally had predicted a dip in markets, although they quickly were proven wrong with a strong upswing shortly after the new president was announced.  Given the inability to rely on tried and true methods for tracking just about any economic trend, people may be more cautious before making that large home purchase or may look for bigger and better deals in order to hedge against any dips or uncertainties.

Bottom line, every presidential inauguration day brings the potential for change in policies and individual agendas, but there is only so much influence one office can have.  Home sales will still be primarily guided by the principles of supply and demand, which have outlived all previous presidencies and show no sign of ending with the newest.  Personal concerns for your family’s individual needs should always be the first consideration when deciding whether to buy and sell.   So when it comes to real estate, don’t overthink things too much this inauguration day.



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