THE NEW PRESIDENCY: HOW WILL IT AFFECT HOME BUYING IN 2017?
The New Presidency and Home-Buying
A new President always means a change in the economy, but in what direction? How significant and how long will it last? Most importantly, how will it affect those wishing to buy a home in Las Vegas in 2017?
With a Republican now leading the helm alongside a Republican Congress, there is little doubt that the economy will benefit from the inevitable, economic stimulus this will bring in the first half of 2017. (1)
And although our new President is a real estate man himself, there has been little mention in his campaign platform on how he will address the current woes facing home buyers.
Housing Deregulation and Home Buyers
One consistent promise that has accompanied this Presidency is that of deregulation, and again, with a Republican Congress, the likelihood of a more “hands-off” approach concerning our banking is likely. On the deregulation radar is the Consumer Financial Protection Bureau and other elements of Dodd-Frank.
Rob Chrisman, a senior advisor for the Stratmor Group, a mortgage industry consultancy, notes that there has been a lot of discussion about how expected changes under the new administration are likely to reduce the Consumer Financial Protection Bureau’s impact, particular in terms of their enforcement.
“If this happens, lenders would likely be more aggressive in mortgage lending than we’ve seen in the last decade,” since the 2009 debacle of bad management led to junk bonds purchases and consequently sent the housing market into the last recession. (2)
Jeff Taylor, managing partner of Digital Risk, a mortgage processing company, agrees and adds, “that over the next couple of years, less stringent regulations on lenders will open up the field,” meaning more opportunity for first time homebuyers in Las Vegas and elsewhere. He also notes that these lowered requirements will enable smaller lending institutions to get in on the game, creating healthy competition among lenders for the first-time homebuyer. (2)
The Las Vegas Housing Market
What this means for the potential Las Vegas home buyer is two-fold. First, the strict requirements for nearly perfect credit scores could be softened, certainly a positive for those with scores almost sufficient, but still not quite good enough. It could also mean coming up with less down, as banks soften their stance for home buyers in Las Vegas and elsewhere.
However, this also means more buyers that are able to purchase a house in Las Vegas and that translates into more competition among homebuyers for Las Vegas real estate. The Las Vegas housing market has been very tight in terms of inventory for a long time. A balanced housing market is typically defined as having a 6-month supply of inventory. According to Vegas INC, the website of The Las Vegas Sun Times, the Las Vegas housing market had only a 3-month supply of available houses for purchase, as of October 2016. (3)
Las Vegas Home Buying in 2017
The Greater Las Vegas Association of Realtors reported that the median sales price of existing single-family homes in Las Vegas sold during September was
$233,500, down slightly from $235,000 in August but up 6.1 percent from $220,000 in September 2015. (3)
So what does this likelihood of less stringent loan requirements, coupled with a sub-average supply of housing mean to Las Vegas home buying in 2017? It means more buyers in a market already experiencing a shortage of available single-family homes.
Best Practices For The Las Vegas Home Buyer
This challenge for the potential Las Vegas home buyer this year makes it even more crucial they are working with a seasoned, on-point, well connected Las Vegas realtor with a number of years in this market and a keen understanding of the day to day nuances and trends, as well as a strong network with all industry connections, from bankers to appraisers.
That way, the Las Vegas home buyer can rest assured they will be shown their very best matches the moment they become available, staying ahead of the increased competition among Las Vegas homebuyers 2017 may bring. They will also reap the benefits of their well experienced Las Vegas realtor’s connections with the team of people necessary to get them from their first showing of that “perfect fit” Las Vegas property through the moment they are handed the keys to their new home.
Citations
(1.) (Yun, Lawrence. (November 10, 2016.) How Trump’s Presidency Could Impact Real Estate. [Forbes Business.] Retrieved from http://www.forbes.com/sites/lawrenceyun/2016/11/10/trump-presidency-and-impact-on-real-estate/#1bb378ba40b7.
(2.) Bundrick, Hal, M., CFP (January 4, 2017) How the Trump Presidency Will Impact Housing in 2017. [Home Affordability, Mortgages.] Retrieved from https://www.nerdwallet.com/blog/mortgages/trump-presidency-will-impact-housing-2017/.
(3.) Sun Staff. (October 6, 2016.) Las Vegas housing supply shrinks as sales rise and prices stabilize. [Business, Real Estate.] Retrieved from https://vegasinc.com/business/real-estate/2016/oct/07/las-vegas-housing-supply-shrinks-as-sales-rise-and/?_ga=1.181075943.113958750.1486332324.
