Whether we’re ready for it or not, the 2020 presidential election is right around the corner. Rocky political environments can create instability in the stock market-causing consumer confidence to drop. But the real estate market is different.
Historically speaking, home sales typically slow down in the fall following the spring and summer rush. BTIG, a research and analysis company, looked at new home sales from 1963-2019 and noted an average decline of -9.8% in November compared to October. In election years, there is a drop up to -15% from October to November because buyers and sellers become more cautious during that time. However, this is only temporary. Also noted was the year after a presidential election is the best of the four-year cycle. This suggests that demand for new housing is not lost because of election uncertainty, rather it gets pushed out to the following year as long as the economy stays on track.
Experts believe that once the election is over, we could see the real estate market perform even better in the months following. However, as we saw with the pandemic, the reward of locking in record-low mortgage rates also may continue to outweigh any consumer caution and drive buyers and sellers to act. Plus, low inventory and high buyer demand puts sellers in a very powerful position.
If you have any questions about your home or situation, please reach out to us today!
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