The existing real estate market is in decline and current forecasts do not see a significant rise any time soon. However, there are many variables that could affect this forecast. Being an election year, a new president, depending on the policies of his platform, may be able to change the economy to such an extent that the real estate market also changes. There is no guarantee that it will be for the better but it very well may affect change. This late in the game the front runners for the election are Barack Obama and John McCain.
Obama is a Democrat who has a proposed housing reform plan. His reformations include changes to the financial regulatory system to have stricter controls on financial institutions. Also in his plan is a system to help with the current foreclosure problem facing many Americans today. He proposes that the Federal government take steps to assist those who are in financial straits by buying out or refinancing existing mortgages to drop monthly payments.
Also, he wants financial institutions to restructure loans as early as possible when a borrower is having problems. In addition he wants to increase tax incentives for people who have mortgages so they can get a break on their taxes. His final initiative includes a federally funded program costing up to thirty million dollars to help with the existing foreclosure crisis facing America today.
McCain, a Republican holds that there should be little government intervention in the banking situation and that the economic issues should play out naturally. However, recognizing the crisis he is open to suggestion from leading authorities for temporary solutions for assistance in order to help the American public through the crisis. However, he maintains that any assistance should be temporary and any permanent reform should be in the means of regulatory changes and increasing the accountability of banks so that the crisis does not occur again.
He also insists that any financial assistance to the public should be for those in primary residences to save their home and no assistance should go to investors in trouble or those who have trouble keeping up a second home or vacation property. While McCain is amenable to analyzing the issue and open to discussion regarding possible solutions for both long and short term, he is non committal about what his housing policy is and refuses to make it a part of his campaign. He does not want to play on the fears of the public to win votes by touting a reform policy that is not feasible or would not pass.
Both Obama and McCain have recognized the existing housing problems in the country. Both have acknowledged a need for some type of reform. They do, however, disagree on how much government should be involved and in which aspects. Obama has a clear cut strategy for housing reform as part of his campaign platform but that does not mean anything will actually come to fruition if he is elected. McCain has been noncommittal in pinning down specifics but has stated it is something that will take precedence. How the market will unfold after the election, though, will depend not so much on who is elected but what will actually occur when they are. Right now, there is merely discussion and planning with nothing concrete evidenced by either side.
How Could a New President Affect the Real Estate Market?
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