President-elect Joe Biden proposed a few different polices that those looking to purchase real estate should be aware of, including those buying in Las Vegas. These policies could affect everyone, including those investing in real estate and people looking to purchase a home.
Right now, the housing market in Las Vegas is on fire. The demand for housing is high, and the number of homes is tight. This makes it a seller’s market, and the limited number of houses for sale is definitely a con at this point. A good realtor can help navigate the market, making it much easier to find the perfect place.
One of Joe Biden’s plans is he hopes to support first-time home buyers by initiating up to $15,000 in tax credits. He also wants down payment assistance for service workers. To help ease the burdens caused by the COVID 19 pandemic, Biden also hopes to give tax credits for renters. His plan also calls for increasing Section 8 vouchers.
Down payment assistance and the proposed tax deductions COVID 19 could bring might pave the way to property ownership for many people. However, this could also backfire for property investors who have many rentals, as first-time home buyers and others move out of their rental properties leaving them empty and open.
Real estate market trends show that election years bring a drop in home sales from October to November by 15 percent. In non-election years, that number is only 10 percent for those months. Elections lead to buyer uncertainty, but these trends are not expected to continue into 2021. Most experts are not expecting a housing market crash.
Interest rates are at an all-time low right now, another huge pro on the side of buying. A lower interest rate means more house for the money, as the monthly payments will be lower. Buyers will also be able to write off the interest on their taxes, benefiting them for years to come. Add in the tax credits for first time home buyers, and this could be the perfect time for someone to purchase a home. It also lends itself well for real estate investors wanting to purchase rental properties.
COVID 19 has negatively impacted the country financially, which has had an impact on potential home buyers. The economy in Las Vegas is also improving, as unemployment has dropped from 30 percent in April to 13.2 percent in September. However, in many cases, income levels will not match up to home prices, which could stall home buying for many people. This will have many searching for rental property, which makes it a great time for real estate investors to purchase.
This election has the potential to both help and harm the real estate market in Las Vegas. Trend watchers can only guess at what will happen, but knowing the president-elect’s plans helps them to make it an educated one. Buyers should weigh the pros and cons and take the time to talk to an experienced real estate agentwho can lead them in the right direction