How will President-elect Trump’s administration’s policies affect the housing/real estate market in 2017 and in his 4 years in office? This is a question that many of us have on our minds with multiple points to consider.

Trump is a successful business person and developer – he lives and breathes Real Estate. His background would indicate he will support the adoption of housing and real estate friendly policies. Changes are likely in the regulatory environment which will relax the impact of governmental agencies ability to impact developers. Federal, State and local regulations cost real estate developers tremendous amounts of time and money, any streamlining of the current system will reap benefits for the development community.

Interest Rates have been stable for a long time. Lenders, the financial markets and consumers felt they knew what to expect from the government on policy matters for the last 8 years. Trump’s message has been one of great change, which creates uncertainty, and perhaps interest rate volatility. However, there is more to the interest rate equation than who is in the Oval Office. It is a complex question with no easy answers.

Availability of credit is key to the strength of the housing market. Trump’s administration will support any programs that eases the availability of credit to consumers and businesses. Trump has also been clear that he is going to cut taxes aggressively. Massive tax cuts should allow consumers more disposable income, which in turn should result in increases in consumers spending. I would expect more tax incentives for homeowners both on the buy side and the sell side. Any credits or incentives that achieve this objective will be supported.

Overall, Trump’s administration is likely to have a positive impact on the real estate market over his 4-year term. It will not be immediate, due to consumer uncertainty as a result of Trump’s unorthodox style. However, at the end of the day, home ownership has always been part of the American Dream, that is unlikely to change over the next four years. We need to stay informed and stay involved in understanding the government’s impact on our lives and investment decisions – Federal, State and Locally.