Close Menu
BestNewsOnline
    Facebook X (Twitter) Instagram
    BestNewsOnline
    • Retirement planning
    • Insurance
    • Real estate
    • Subscription
    BestNewsOnline
    Home»Real estate»What will be the impact of the results of the mid-term elections on the real estate market?
    Real estate

    What will be the impact of the results of the mid-term elections on the real estate market?

    November 10, 20223 Mins Read
    WhatsApp Facebook Telegram
    The house is sold!  image bank

    ajcasanova / iStock.com

    Although the midterm elections were held on November 8, it is still unclear who will control Congress. Republicans appear to hold the edge in the US House, The New York Times reported. The Senate remains up for grabs and may not be decided until next month, when the second round between Georgia senator Raphael Warnock and challenger Herschel Walker takes place.

    See: 29 Careless Ways Retirees Waste Money
    To find: 3 things you need to do if you want to buy a house

    So far, the election results have been much closer than expected, even if the GOP ends up controlling one or both houses of Congress. If this happens, the US real estate market could be impacted in different ways, according to a new report from Cowen.

    Cowen analyst Jaret Seiberg wrote that a Republican-led house likely means the end of the first-time buyer tax credit, MarketWatch reported. The credit was intended to give first-time home buyers up to $15,000 in refundable federal tax credits. Democrats tried to push it through last year through a reconciliation bill, but a new reconciliation bill is unlikely in a GOP-led house.

    Another provision of the reconciliation bill, rehab housing, will likely also fail under a Republican Congress, Seiberg said. Under the rehabilitation housing program, billions of dollars would have been invested in the construction, renovation or purchase of affordable social housing.

    “It’s hard to see how that goes beyond a GOP house,” Seiberg noted.

    Affordable housing measures adopted in some cities

    There is, however, good news for proponents of affordable housing. At the municipal level, voters in some cities approved more spending on affordable housing, NPR reported.

    Kansas City voters approved $175 million in bonds for “very affordable” housing with rents as low as $550 to $750 a month. Voters in Austin, Texas approved the city’s largest housing bond measure, while in Palm Beach County, Florida, unofficial results showed voters approving $200 million in additional property taxes to encourage developers to build moderately priced homes.

    Back at the federal level, Republican lawmakers are likely to keep Fannie Mae and Freddie Mac under government conservatorship, Seiberg noted. The Trump administration had wanted to remove Fannie and Freddie from government trusteeship, but that probably won’t happen even under a Republican Congress.

    Finally, no matter who controls Congress, you can expect lower premiums for Federal Housing Administration (FHA) loans.

    Take our poll : Are you struggling to keep track of your utility bills?
    After: 6 Types of Retirement Income That Are Not Taxable

    “President Biden already has his FHA commissioner and [Housing and Urban Development] secretary in place. That’s why even a GOP sweep shouldn’t stop Team Biden from cutting FHA bonuses,” Seiberg wrote. “We still expect a 25 basis point reduction in initial fees and a 25 basis point reduction in annual fees.”

    More from GOBankingRates

    Add A Comment
    Leave A Reply Cancel Reply

    What's hot

    NEW U.S. RETIREMENT MARKET OUTLOOK FROM T. ROWE PRICE EXAMINES THE 2023 RETIREMENT LANDSCAPE

    November 16, 2022

    🌱 City State Address + Real Estate News + Learn Yoga Breathing

    January 11, 2023

    GOBankingRates Launches Smart Holiday Spending Guide

    November 3, 2022

    CBU dividend announcement $0.4400/share 11/16/2022

    November 17, 2022
    Don't miss

    Zachary, real estate agent, shares his television experience with Rotary | Zechariah

    November 1, 2022

    Augusta-based real estate company rebrands itself as Rizzo Mattson, Realtors

    November 5, 2022

    Iowa real estate developers form association to focus on advocacy

    January 25, 2023
    Picked for you

    LACERA invites tenders for the system’s emerging real asset management program

    Retirement planning February 2, 2023

    The Los Angeles County Employees Retirement Association invites proposals from qualified companies to implement the…

    BestNewsOnline.net is owned and managed by

    Top10 International FZ LLE
    Office 2002, 20th Floor, Creative Tower
    Fujairah, United Arab Emirates
    TRN: 100608946800003

    • Home
    • Contact us
    • Privacy policy
    • Terms and services

    Type above and press Enter to search. Press Esc to cancel.