Should I Buy a House Before the President is Inaugurated?
As the year 2020 ends, it’s safe to say it was a very hard year for many people, including those who rent or pay a mortgage. Thankfully, the real estate industry has seen a sharp uptick in those interested in buying homes, particularly homes outside the bigger cities; however, this doesn’t negate the fact that people are still struggling and likely will into 2021. A new year will also bring the nation a new leader as President-elect Joe Biden is set to take office on January 20th.
As with every new President, a new administration brings in new policies that directly affect the American people. If you’re looking to buy a home, you may be wondering if now is the right time to do so or if waiting to see how a new administration’s housing policies will influence home affordability is a safer choice. No matter who you voted for, it’s important to be informed on what new policies may come into effect and what the future holds in store for home buyers.
One of President-elect Biden’s housing proposals involves giving first-time homebuyers a $15,000 tax credit. On paper, this does seem to give younger people an advantage who may be struggling financially due to government lockdowns and joblessness because of the COVID-19 pandemic. Rising housing prices have influenced many who dream of buying their first home to shrink a little because of their inability to afford these expenses.
That said, if one is seeking to buy a home inside the city, this tax credit may not do as much as one would like in order to afford a property. Joe Biden also promises to deliver at least $100 billion towards affordable housing that would create many new low-income housing units to help those less fortunate be able to afford a new home. It would also help eliminate local zoning laws that have made it more difficult for new homes to be built.
Will it work?
The problem with these policies lies in the fact that demand has been much higher than the supply of houses available. If these expensive, taxpayer-funded proposals are made and even more people are able to enter the demand side of home buying, this could make it extremely difficult to provide homes for people looking to buy. One also has to keep in mind that it’s not simply housing policies that play into the costs of buying a home. The cost of living can also influence this due to different policies such as increased regulations on small businesses that hire some looking to buy a home. Increased taxes, rising oil prices, and a declining stock market due to uncertainty in a new administration can also play into how much one can afford to move into a new home.
At the end of the day, it really depends on your personal financial situation and job security that influences whether or not you can buy a home before the next president takes office. My advice would be to wait and see what happens with the economy, the COVID-19 pandemic, and the housing market in general. Like with any other instance of uncertainty, it’s better to wait and find the right opportunity than to jump in now and regret it later.
In the meantime, check out these tips for potential home buyers:
- 3 Things to Avoid When Buying a Home in Albuquerque
- 2021 New Construction Predictions
- 7 Issues of Concern on a Seller’s Disclosure Form
- 10 Key Things to Look for in a Neighborhood When Buying a Home
- 5 Steps to an Easy Downsizing Move
- Mortgage Pre-Approval vs. Pre-Qualification
- The 30:30:3 Rule is Still Best When Buying a Home (Even Now)