How does the presidential election affect the housing market? Don’t get drawn in by all the hype; always look to reputable resources if you want to know the truth about our housing market.
How does the presidential election impact the housing market? Business analysts have watched elections for years and they have found that some things do change during an election year.
In fact, some of these studies found that the marketing and advertising done by the candidates’ campaigns have more of an impact on market uncertainty than the actual results of the election do. These negative ads fuel uncertainty among voters, and that uncertainty sometimes spills over into the business world, which causes myths to begin in the real estate industry as well.
I encourage you not to believe in all of the hype. I think that it is best to hear from the experts that service and analyze the real estate industry and have done so for decades.
According to the National Association of Realtors, inventory has been very low this year. However, even though 2016 got off to a slow start, we have seen the best growth since 2007.
Not only that, at the beginning of the year, Fannie Mae said that consumers and businesses didn’t have much confidence in the economy. However, since the number of pending home sales and the number of mortgage applications have both gone up and interest rates have gone down, it looks like the market is trending upward at this time.
Our housing market is completely different than it was during the 2012 election.
Finally, you should keep in mind that since the last election in 2012, our housing market is in a totally different place. Back then, home values were just starting to rise as we exited the Great Recession of 2008.
In fact, 2012 was probably the first year that we started to see some gains in the housing market. Since 2012, home prices have increased by an average of $60,000 nationwide. Not only that, the unemployment rate was at 8% four years ago; today, the unemployment rate is hovering at around 4%.
Ultimately, you have to look at the facts and figures from reputable sources, like Fannie Mae and the National Association of Realtors, in order to see how the market is really doing. Don’t get drawn in by all of the hype that comes with presidential elections.
If you have any other questions about our current market, just give me a call or send me an email. I would be happy to help you!
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