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If youre thinking of buying a home in the near future, theelection outcome might impact your decision.
Interest ratesare also high.
Like home prices, interest rates have increased since the pandemic and when Biden took office.
On January 7, 2021, the average mortgage interest rate was 2.65%.
Thats not to say that Biden has been entirely responsible for growing home prices and interest rates.
Parangi explained that supply and demand imbalances in the real estate market caused home prices to increase.
Many existing homeowners are reluctant to sell due to having locked in lower rates, further constraining supply.
Parangi felt that the credits wouldnt fully address high home prices or the supply and demand issue.
The tax credits might stimulate demand by making homeownership slightly more affordable in the short term, he said.
The credit would be given for two years to compensate for high interest rates.
Like the $400 tax credit, this solution could stimulate demand and actually inflate home prices.
Bidens proposals, while well-intentioned, may not be the game-changer many hope for.
Making the housing market accessible requires a multi-pronged approach, explained Parangi.
Buying a home isnt always thebest financial move, regardless of whos in office, said Ryan.
Ive advised countless clients to rent and invest the difference when market conditions arent favorable.
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