What Does the Election Have to Do with Real Estate?
Anyone else just LOVE election season?
Yeah, me neither.
There is so much information, information being thrown at us, and most of it causes us to be fearful.
I have had a lot of conversations with clients lately, and many of them are so fearful about what this election is going to do to the economy and the housing market.
Because of that, I thought it would be helpful to show you how past elections have impacted the housing market.
Home Sales
In the 2-3 months leading up to the election, there is usually a slight slowdown in home sales.
Some consumers will simply wait it out before they make any real estate decisions around an election. If you are someone that is considering making a move in the next 6 months and you like to be ahead of the curve, it could be worth taking advantage of this short slow down, to beat out the buyers & sellers that will be jumping back into the market once election season is over.
It is important to know that this slowdown is usually small and temporary. Homes sales went UP after 9 of the last 11 presidential elections. Look at this chart!
Home Prices
But what about the prices of homes? Homes prices generally rise over time, regardless of an election cycle. Base on what history shows, you can expect the current pricing trend to continue, (barring any major changes in the world or economy). The latest report from NAR shows that after 7 of the lsat 8 presidential elections, home prices increased the following year. The only outlier was from 2008-2009, which we all know is not a typical year. Thankfully, today our market is much more resilient.
Mortgage Rates
And because we havn’t been talking about mortgage rates enough lately, lets touch on them one more time. In the past 8 of 11 years, interest rates have had a decrease the year after an election year. We are actually already starting to see interest rates decrease. Experts say that we should continue to see decrease slightly the rest of this year.
So what does this really mean?
Well, Presidential elections do have some impact on the housing market, they are minimal. Also, if you are looking to make a move, taking advantage of the slower time before the election could save you time and money.
I know we are told we are suppose to be fearful right now, let us be the ones to put your mind at ease. If you are fearful about the housing market, don’t be. We have a healthy market right now full of opportunity if you are wanting to make a move.
If you are considering a move in the next year, reach out to us.
The sooner we start the conversation, the better we can plan and strategize with you to make your upcoming move a WIN!
