There has been a great deal of forecasting on how the Presidential election might impact real estate, both commercial and residential, and you should know that as a REALTOR®, the national professional organization has compiled a significant amount of data and experience into formulating the future outlook on the market.
So why does an election influence the housing market?
Studies show that election years can be uneasy and somewhat stressful for Americans. Large purchases, homes, cars, etc. are often put on hold until the election is over. These same studies, though, show that the actual results of the election have little, if any impact on major purchases (mortgage rates, corporate investment, the stock market and obviously housing prices) even if the financial future of buyers may be influenced by the incoming president.
Since 1833, the Dow Jones Industrial Average has gained an average of 10.4 percent in the year before a presidential election but only six percent during the election year, according to the Stock Trader’s Almanac. By contrast, the first year of a president’s term sees an average gain of 2.5 percent and the President’s second year in office sees an increase of 4.2 percent. (The biggest exception to this rule occurred in 2008, when the Dow sank almost 34 percent.)
Realtytoday.com states that it is generally harder to sell homes during election years, but that the year following an election it would be more beneficial to list and sell your home due to the hesitation of many buyers during that election year cycle. Your home may also command a slightly higher price following an election as well.
For prospective buyers, the year 2017 looks like there will be a slight increase in inventory, which is expected to show only a slight increase in home prices, thought to likely be around 3%. And the most encouraging data is that mortgage rates are still extremely low with typical 30-year fixed rates at 3.73%, which makes home buying affordability a greater possibility.
There is even a greater likelihood that the luxury real estate market will globally undergo a positive upward trend because of a property industry leader in the White House for the first time in American history. Without a doubt a Trump presidency will be pro-property and pro-real estate.
So, to summarize, the near future holds excellent opportunities for people to make their real estate decisions, whether buying or selling their home, upsizing or downsizing, single-family, condos or weekend second home retreats, and even investment properties.
The professionals at Deon Cannon Realty are here to serve your real estate needs. Call them at (404) 630-2985 and they’ll work with you right now to develop a strong and sensible plan to sell your home or find the one that’s absolutely perfect for you.