With the presidential election coming up in November you are probably wondering if now is a good time to buy or sell.
I did a little research and found some interesting stats you should be aware of.
November Home Sales Slow in a Presidential Election Year
A study by BTIG found that in a presidential election year home sales activity drops by 15% between October and November. In a regular year sales only drop by 9.8%.
This decrease in home sales is only temporary. The year following a presidential election is usually the best year for housing out of the 4-year election cycle.
Consumer Confidence Rises with the Winning Candidate
There’s a large consumer confidence gap between red and blue voters. After the 2016 election the consumer confidence index of Republicans increased, while the confidence of Democrats dropped (see chart below).
As a result, building permits for new homes surged by 2% in red counties while it fell by 8% in blue counties. The report concludes that a change in administration will likely benefit housing dynamics in blue counties, while a re-election of President Trump could continue sales growth in red counties.
Election Yard Signs Impact Buyer Perception
There is evidence that the yard signs displayed in your neighborhood will impact buyers. Here’s a Facebook post from a local Realtor to that effect:
You may argue that you don’t want to have people in your neighborhood that don’t agree with your politics. This is a dangerous thought when you consider Fair Housing.
While party affiliation is not protected by Fair Housing, race, national origin, and sexual orientation are.
How 2020 Is Different than Previous Years
This year has been dominated by the Coronavirus. Until now, presidential politics did not have any impact on the real estate market. Covid, however, slowed down the spring market and created a summer boom.
For details please check weekly updates on my website.
There is still a tremendous need for housing that cannot be satisfied in 2020.
If interest rates remain at historic lows, we are looking at a booming winter and spring selling season, regardless of who wins the election.
If you are planning on buying or selling DON’T wait until November! Click here to schedule your FREE Consultation NOW! Call or Text me at (614) 975-9650.
Susanne Novak has been a Realtor since 2007. She is the broker and owner of RE/MAX 24/7 in the Dublin Historic District. Susanne typically helps 50-60 families each year with their real estate needs. She's your trusted advisor when you search for your dream home, and a skilled negotiator when she lists your property to get top dollar when you sell.