OK, so we're diving into, you know, how this election could impact the housing market. Yeah.
We've got this article here with some expert predictions, and it looks like
it's going to be a pretty bumpy ride, depending on who wins.
You know, it really is striking just how important this election is for the housing market.
Right. Like we're at this really delicate point right now. Yeah.
With interest rates and inflation and affordability all kind of like intertwined.
Yeah. So it feels like this election could really tip the scales.
Absolutely. It's like we're standing at this fork in the road, right? Okay.
And one path, maybe with a Trump presidency, leads us towards this market boom.
And the other path, maybe under Harris, seems to be more focused on stability and affordability.
Wow. Okay. So those are two pretty different paths. So let's break it down a bit.
Yeah. Let's start with what a potential Harris win could mean for people who
are hoping to buy a home. Sure.
So the article highlights this prediction from Rick Coochie at FunKite,
and he suggests that under Harris, we could see a lot more affordable housing
projects, which would be great for first time homebuyers.
So more options for people trying to break into the market. Exactly.
And it's not just like a random guess, you know. Right.
Harris has a history of supporting rent control and affordable housing initiatives.
So if she's elected, it's a pretty safe bet that those issues will be high on her priority list.
OK, so that sounds promising for some folks.
But is it really that simple? Well, the road to affordability,
you know, it's not always a straight line. How so?
Well, even though her policies might aim to make homes more accessible.
You know, she's also going to be dealing with this whole inflation thing.
Yeah. And the article suggests that she might just continue raising interest
rates. To fight those rising prices.
Exactly. But wouldn't that make it harder to borrow money? Yeah, you're right.
Even with more affordable options, getting a mortgage could still be really
tough. Oh, so it's like a balancing act. Yeah, it really is.
Trying to make housing more affordable while also trying to keep inflation under
control with these interest rates.
It's not easy. That makes sense. Yeah. Okay. So let's flip the script.
What happens if Trump wins? The article makes it sound kind of crazy.
Right. It does paint this picture of a wild ride.
Yeah. So Marty Harley, the CEO of First Trust Financial. Okay.
He predicts that a Trump presidency could lead to this like massive refinance
boom and record home sales.
Whoa. Oh, OK. That's a bold prediction. Yeah. What makes them think that would happen?
Well, the prediction is based on the idea that Trump would probably push for
lower interest rates to try and stimulate the economy.
Right. And when borrowing gets cheaper, you can bet people are going to be jumping
into the housing market.
Makes sense. Lower rates mean lower monthly payments. Right. Exactly.
But wouldn't that just fuel inflation again? Yeah. Like what Harris is trying
to avoid. You got it. It's kind of a catch 22.
OK, so this is where I get a little confused. Yeah. Can you explain like how
interest rates actually work and how they affect the housing market?
It seems like everyone talks about them, but I'm not sure anyone really gets it.
Yeah, you're right. It is a pretty crucial part of all this. Yeah.
Basically, interest rates are the cost of borrowing money. OK.
So when interest rates are low, borrowing money is cheaper.
It's easier for people to take out loans for things like houses.
Yeah. And that increased demand can drive up housing prices.
Yeah. But when interest rates are high, borrowing gets more expensive.
Yeah. And that can actually cool down the market because fewer people can afford to buy.
Gotcha. So if Trump wins and pushes for lower interest rates.
Wouldn't that make houses less affordable in the long run?
It's definitely a possibility. And it's not just about the interest rates themselves.
OK. We also have to consider the overall economic strategy that Trump might use. Right.
You know, if you look back at his first term, he was a big fan of deregulation and tax cuts.
Yeah. The idea was to put more money into the economy, which could lead to more
people having money to buy homes, but it could also lead to more inflation down
the line. So it's like this trade-off. Exactly.
You get a short-term boost to the economy. Right.
Maybe with lower interest rates at first. Yeah. But then you risk higher inflation
and maybe even higher interest rates later on. Yeah.
It's this constant back and forth between trying to stimulate the economy and
keeping inflation under control.
Okay. So it sounds like both of these scenarios, whether Harris wins or Trump
wins, come with their own set of pros and cons for the housing market.
That's exactly it. There's no easy answer here.
Right. And it's going to be fascinating to see how it all plays out.
But there's another layer to this story, something that could impact the housing
market no matter who wins the election. Oh, I'm intrigued.
Tell me more. Well, the article quotes Katerina Odachenko.
She's a political strategist and she's also a real estate licensee.
And she makes this interesting point.
She says the housing policies highlight the stark differences between the two
major political parties.
For many Americans, the issues of affordability and accessibility in housing
will be decisive factors in the upcoming election.
It's really interesting how she connects those dots. Yeah. Like housing policy
becomes this tangible way to see what the parties stand for.
And for voters, you know, it's not just some abstract idea.
It's about their lives, their homes. Right. It's personal.
Yeah. So as we're listening to all of this and thinking about,
you know, heading to the polls, it's like we need to really think about our
own priorities. Exactly.
What matters most to you? What do you mean by that? Well, think about it.
Are you a first-time homebuyer who's just trying to get into the market?
Okay. Are you an investor looking for the next big opportunity,
your personal situation, your financial goals? Yeah.
All of that should play a role in how you see these potential changes in the housing market.
It's like, okay, we've heard what the experts think. Yeah. But what does it actually mean for me?
How could these policies affect my own plans?
Exactly. And that's why it's so important to stay informed. Right.
We can't just sit back and passively listen.
You know, we need to be actively seeking out good information,
analyzing it, thinking critically about how it applies to our own lives.
So this article is a good starting point. Yeah.
But it sounds like there's a lot more to consider. Oh, absolutely.
We've only just scratched the surface. The housing market is dynamic.
It's always changing. Right.
Even after the election, there will be new challenges and opportunities popping up.
So are there other things we should be thinking about? Yeah,
there are definitely some underlying trends that are going to shape the future
of housing, regardless of who wins in November.
That's what I was getting at earlier. So what are some of those other factors?
Well, think about things like demographic shift. OK.
Technological advancements, changes in what consumers want. OK.
These are all forces that are already in motion, reshaping the housing landscape in huge ways.
Can you give some specific examples? Sure. How about the rise of remote work? Right.
That's already had a massive impact on where people choose to live.
Right. And that trend is likely to continue.
People are prioritizing different things now. Things like access to nature,
more space affordability.
And then there's the growing focus on sustainability.
Okay. Consumers want energy efficient homes and builders are responding with
new technologies and materials.
These are trends that are going to stick around. It's amazing how all these
seemingly unrelated things like technology or the way we work can have such
a big impact on the housing market. It's all connected.
And let's not forget about climate change. It's not just some abstract concept
anymore. It's happening now.
We're seeing rising sea levels, extreme weather events, especially in coastal areas.
This is going to play a huge role in shaping the future of housing from where
people choose to live to how homes are built.
It's a lot to think about. Yeah. And it makes this whole conversation about
the election feel almost, I don't know, short sighted. I get what you mean.
It's easy to get caught up in the drama of the election cycle. Right.
But we have to remember that there are bigger forces at play,
long term trends that will shape the housing market no matter who's in the Oval Office.
So what's the takeaway here? What should our listeners be doing with this information?
I think the key is to stay engaged, stay informed, keep asking questions and
don't just focus on the election.
Think about those bigger trends
we talked about. Okay. How might they affect your own housing goals?
How might they change the communities you live in? It's about thinking beyond
the headlines, beyond the election, and really understanding how complex these issues are.
And the more we understand these forces, the better equipped we'll be to make
good decisions, not just as voters, but as people navigating this ever-changing world.
All right. I'm ready for that final thought-provoking question from the article.
Oh, yeah. Remember that part at the end where they left us with something to
ponder? Yeah, the one about those unforeseen factor that could impact the market.
Exactly. Let's dig into that. What are some of those other things that could impact the U.S.
Housing market in the coming years, regardless of who wins the election?
It's really interesting to think about.
You know, those ripple effects, those unexpected things that could happen that
could really change the game. Yeah. Like what?
Well, for example, what if there's some huge breakthrough in construction technology?
OK. Something that like dramatically lowers the cost of building homes.
That would totally change things, right? Suddenly affordability wouldn't be such a big problem.
Exactly. Or what if like the global economy shifts, you know,
impacting investments and interest rates all over the world?
These are those kind of like unpredictable factors that could throw everything
off course. It's almost like trying to predict the weather. Yeah.
Right. There's so many things that could happen. It is kind of like that.
And just like with the weather, we can't control everything. Right.
But we can stay informed, try to understand the trends and make decisions that
are, you know, adaptable and resilient.
So even though we've been talking about the election and how it could affect
the housing market. Yeah.
It sounds like what you're saying is we need to think bigger.
We need to think about those long-term forces that are going to shape things no matter who wins.
And that's what makes this whole conversation so interesting.
It's not just about predicting the future.
It's about understanding how complex these systems are and realizing that there's
always more to learn. I think that's a great point to end on.
You know, it's about embracing the uncertainty, staying curious,
and being open to new possibilities.
I like that. So to everyone listening, thanks for joining us on this deep dive into the U.S.
Housing market and the 2024 election. Yeah.
Thanks for listening. We hope this has given you some things to think about,
some new perspectives as you navigate these complicated issues.
And remember, keep learning, keep asking questions, and keep those conversations going.
The future of housing is something we create together. Until next time,
stay informed and stay engaged.