Although the relationship might not be apparent, there is a significant relation between the elections and the costs of moving in MD and DC. The effects are not necessarily on minor costs such as U-Haul rentals or bubble wrap, but on the major costs such as real estate value, mortgage costs, and taxes.
The housing bubble burst and the economic crisis has left the nation’s real estate market rather vulnerable to the next head of state. Irrespective of whether President Obama is reelected or Republican candidate Mitt Romney wins, the elected president’s employment and economic policies would be the key factor that determines the heath of the real estate market for the next four years.
The next president will determine how involved the government would be in housing finance and if consumers would have affordable mortgage rates available. The policies set will also determine factors like how much profit or loss one can expect from selling current property and whether it would be feasible to buy another house or not.
Both Obama and Romney have indicated steps they would take towards improving mortgage lending and the overall recovery of the real estate market.
President Obama will build on his current programs that focus on providing foreclosure relief, improving loan modifications, and expanding refinancing. Obama has been vocal about a proposed legislation that improves the refinancing process. Also, under the Dodd-Frank Act, Obama implemented consumer protections and new real estate finance rules that would for the most part remain throughout his next tenure if he is reelected.
On the other hand, Romney stated that he would annul the Dodd-Frank Act and replace it with a series of regulations that would improve the market for private sectors. According to Romney, giant institutions like Freddie Mac and Fannie Mae have made it difficult for smaller banks to make loan modifications to cater credit to the masses.
According to financial gurus the factors that would affect costs include the mortgage market, foreclosures, down payments, and how much the economy improves.
The mortgage market is important because the President will determine how much of the housing market would be subsidized by the government. Subsidiaries will affect the cost of both rent, and overall prices of property.
Foreclosures will play an instrumental part because Freddie Mac, Federal Housing Authority, and Fannie Mae own over 200,000 foreclosed homes that should be refinanced or made available through rent for consumers. If these homes open up, the prices of real estate should drop quite a bit and make purchasing homes affordable for most.
Down payments are important because the decision of whether the government should continue increasing the amount money required for purchasing property or decrease it to encourage property sales will determine how many Americans can afford to purchase homes. If down payment requirements are decreased then costs of rent will decrease but costs of residential properties will marginally increase.
Improvements in the economy directly affect the future of the real estate market and moving company in MD and movers in DC costs. People would be able to afford larger homes if jobs were plentiful and if they reimbursed well.
These factors primarily will affect how feasible it would be to switch homes on an overall basis. Of course job opportunities, cost of living, and taxes vary from state to state. So, more factors would be needed to be taken into consideration for individual cases. However, someone monitoring the mortgage market, foreclosures, down payments, and the economy should be able to determine whether it’s a smart time to move into a larger home or not.