How a Republican President Affects Home Prices
Locations, Hawaii's leader in real estate reports how presidential policies can affect the local Oahu and national housing market.
Oahu, HA, January 24, 2017 (Newswire.com) - As Donald Trump enters office as the 45th President of the United States, many have asked, "what impact will President Trump have on the Oahu housing market?" Going back to 1958, when the average price for a single-family home on Oahu was $23,069, and Dwight D. Eisenhower was president, we determined that Hawaii’s real estate market is not directly affected by specific presidents or political parties. Larger economic factors, such as interest rates, wage growth, and unemployment rates, are what actually fuel consumer confidence.
A recent example of how a president can influence the housing market can be found in the wake of the 2008 financial crisis. To help stimulate the housing market, President Obama and his administration rolled out a homebuyer tax credit of $8,000 while new mortgage regulations were put in place by the Consumer Financial Protection agency. The result was stricter lending policies and much-needed stability.
Looking forward to the next four years, it is worth noting that a significant portion of President Trump’s wealth stems from his investments in real estate, so it would be surprising if he did anything to negatively affect the housing market. While Locations doesn't know how President Trump will change tax or housing policy over the next four-year, the immediate influence on housing market prices will be interest rates, which are affected by inflation and consumer confidence. In 2017, Locations expects interest rates to increase to the 4.3%-4.5% range, which can mean tens of thousands of dollars over the lifetime of a home loan.
“So far in 2017 we’ve noticed a spike in people searching for homes on Oahu on our new website,” said Chad Takesue, Senior Vice President of Sales for Locations. “The demand for Hawaii real estate is always strong and with interest rates expected to increase the time to buy is now if you’re looking to invest or trade-up.”
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Locations has been Hawaii’s leader in real estate since 1969 and offers thousands of Hawaii real estate listings from each major island including Oahu, Maui, Kauai, Molokai, Lanai, and the Big Island. Our site helps make the home buying and selling experience a pleasant one, which is why we also offer a complete set of real estate tools and resources including mortgage calculators, moving guides, Hawaii neighborhood information, real estate buying tips, and articles. Learn more at https://www.locationshawaii.com/