The U.S. Presidential Election and Housing Market Trends
Good Monday Morning!
The 2016 election season has been one of the most divisive presidential races in this country's history and unfortunately, that unrest has been something of a wet blanket on the housing market nationally. While many areas in the nation have enjoyed a boom market, the sense of unease and nervousness has convinced many Americans to wait before buying or selling a home. This is not a new scenario for our country, even in years with less chaos and uncertainty, Realtor associations nationwide have noted that consumers tend to be more cautious during an election year. The question is:
Should prospective sellers and buyers hit the pause button during an election year?
A recent study showed that housing prices tend to drop slightly, approximately 1.5 percent, during an election year. But even if that is the case, many real estate experts agree that consumers shouldn't feel the need hunker down until after the show is over and a new president is chosen. The fact is that real estate values locally and nationally are determined by only one factor: Supply and Demand.
The great Warren Buffet said "Be fearful when others are greedy and greedy when others are fearful". Translated for the general public, that means that we should do the opposite of what others are doing.
When the media is predicting gloom and doom, many buyers and sellers will make the decision to sit on the sidelines. What does that mean for sellers? Often it means lower housing inventory which equals less a smaller pool of buyers and possible multiple offer situations. For buyers it can add up to less competition and the opportunity to find a bargain. Added to that the fact that mortgage rates are still at historic lows, now is definitely the right time to get the most bang for your buck.
Have an awesome week!
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