Anyone looking to buy a home today is likely frustrated by sky-high prices and slim pickings. But President-elect Joe Biden, who takes office Wednesday, will aim to ease those issues as he gears up to implement his plans for the housing market.
From home financing to home construction, Biden’s plans are focused on affordability. Here are some policies he could push for:
In December, the number of homes for sale plummeted nearly 40% compared with December 2019, according to realtor.com. Competition for what was on the market was fierce, with the typical home selling in just 66 days, two weeks faster than the year before.
“Looking forward, we could see new [inventory] lows in the next couple of months as buyers remain relatively active, but a surge of new COVID cases may slow the number of sellers entering the market,” said Danielle Hale, chief economist at realtor.com.
Home prices are also rising at the fastest pace in six years, according to CoreLogic, more than 8% higher in November year over year, driven by record-low interest rates and pandemic-driven demand from buyers looking for larger, suburban homes.
Several proposals from the Biden housing plan could take the pressure off both home prices and the supply of houses for sale, with changes potentially coming to both lending and the home construction markets.