Is the Election Spooking Some Buyers?
The presidential election is now in full force, and it may be deterring some buyers and sellers from making a move until after Election Day on Nov. 8, real estate professionals report.
Read more: Buyers Gloomy Over Presidential Election
An article at realtor.com® says the election isn’t unusual in causing some Americans to wait. “REALTORS® have long noticed that home buyers and sellers cool their heels during presidential election years,” the article notes. “Because people are uncertain about what a new president will mean for the real estate market, and the U.S. economy as a whole. So they figure it’s wise to maintain a holding pattern until the next president is locked in place.”
Indeed, Cara Ameer, a real estate professional in Florida, asserts that “people do use an election as an excuse to delay selling or buying a home. Having worked in real estate through several presidential election cycles, I have observed that it can seem harder in an election year to move properties. People have fears and concerns, whether perceived or real about an election outcome that may have them putting their real estate process on pause.”
Home prices during presidential election years rise about 1.5 percent less than other years, finds a study of real estate listings in California dating back to 1980 (e.g. that means a $166,000 home would sell for $7,462 more – but about $2,000 less than usual, realtor.com®’s article notes).
“I don’t think it’s a wise idea to try to time any markets, especially housing,” says Kurt Westfield, a real estate expert at WCE Equity Group. “Housing markets are very localized, subject to microeconomic shifts. The election takes place on a much larger macroeconomic scale.”
Source: “Should You Wait Until After the Election to Buy or Sell a Home?” realtor.com® (July 25, 2016)
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