Oh elections! How we love and hate them. The shouting, the patriotism, the ad campaigns, and the scandals. It’s enough to send any consumers indoors and keep them there. But, is the upcoming presidential election bad for real estate?
A survey done in May of this year by Redfin.com reported that 27% of consumers believe that the upcoming presidential election will have a negative effect on the housing market. And you can understand the lack of confidence in the market. Any president that takes office might have a different policy on housing or mortgages that could potentially impact buyers. Many consumers would simply rather wait it out and buy or sell when they feel certain that politics have stabilized.
But it’s not just speculation. Movoto.com did a study with data starting in 1980 which showed that housing prices increased 1.5% less than in the year right before the elections, and 0.8% less than in the year right after the election. This could mean a difference of thousands of dollars for buyers and sellers.
However, some consumers are hoping to take advantage of the doom and gloom in order to get a great deal. To borrow a sentiment from famed investor Warren Buffett, “Be fearful when others are greedy, and greedy when others are fearful.” With interest rates lower than they have been since 2013, if you’re a buyer who’s not intimidated by shouting politicians it may be a great time to buy.
So, is the upcoming presidential election bad for real estate? Let me know what you think.