Will The 2016 Presidential Election Affect The Real Estate Market
Will The 2016 Presidential Election Affect The Real Estate Market
Many wonder and ask whats going to happen to the Real Estate Market after the election? The 2016 presidential election will absolutely have an impact on the housing market and the U.S. Economy. What those impacts will be are dependent on who occupies the White House in 2017.
Whether you prefer Hillary Clinton, Donald Trump or Bernie Sanders, there’s no question that the next president’s economic and employment policies will be a key influence on the health of real estate for the next four years, including, perhaps, the price of a mortgage.
A recent survey revealed increasing numbers of Americans believe the 2016 presidential election will have a negative effect on the housing market.
The survey was done by a national real estate firm and showed 27 percent of homebuyers believe the election will hurt real estate, up from 15 percent in February. The poll was conducted between May 17 and May 23 and includes responses from 975 homebuyers in 36 states and Washington, D.C.,
“While homeowner anxiety over the election is clearly mounting, the likelihood of an immediate shock to the market is slim", It will take considerable time for our next commander-in-chief to implement policies that have any impact on housing.
Stocks will plunge if Donald Trump is elected President. And the bond market could capsize if Trump goes ahead with plans to renegotiate the national debt. BUT if Hillary Clinton wins the White House, she’ll cripple the economy by hiking takes by $1 trillion.
Election or not recognize that sellers have diverse reasons for selling: job change, family expansion, trade up, martial changes, or perhaps health or a child’s special education needs. So election year or not, economy up or down, a need to sell may exist with a call for action (and perhaps an urgent one at that). Hold out for the highest price or settle for the best price and move on.
On the other hand, surprisingly, buyers seem to be cut from a similar cloth. Most purchases are discretionary yet with different timing and motivation, which suggests no urgency in pursuing goals such as trading up, adding another bedroom, realizing that renting doesn’t pencil out anymore, and of course the HNWIs (high net-worth individuals) who want that oceanfront after all. Timing is everything and election-time isn’t really primetime.
Elections have historically affected house prices with a slightly lower percentage increase in value. According to a movoto.com study of the California real estate market, house prices typically rise 1.5% less during an election year than in the year prior to the election, and 0.8% less than in the year following the election. This may not seem like much, but these percentage differences can add up over time. An election year could potentially cost homeowners thousands of dollars in lost value to their largest assets.
Using the Freddie Mac House Price Index, I looked into the historical effect that election years have on U.S. real estate prices as compared to off years. The off years that are considered are the even-numbered years that fall between elections. Using the percentage increase for the 12th month of each year in the sample, I found that house prices in the off years increased, on average, by 0.22% more than house prices in election years. The chart (right) details the percentage increases for each year in the sample since 1978. For 2016, house prices are estimated to increase by 3%, a drop from 5% in 2014.
So how will 2016’s Election Day play out? I think we’ll just have to wait for November 8th when Americans cast the deciding votes for the 58th quadrennial U.S. presidential election.
Ellen Dynov-Dell'Alba & "The Platinum Group" are here for all your Real Estate needs. Let us know how we can help
Author:Ellen Dynov Phone: 732-710-5342 Dated: October 5th 2016 Views: 733 About Ellen: ...
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About Ellen Dell'Alba - Team Leader of the Platinum Group:
Ellen is one of the most diverse realtors among the Keller Williams Realty Agency in Monmouth & Ocean Counties. Being with the company for several years, she continues to make considerable strides in becoming the best realtor she can be. Ellen is a listing specialist, along with having certifications in ABR (Accredited Buyers Representative) and BOLD. Her strategy in helping her clients buy or sell a home is fairly simple: "I do whatever it takes to make my clients 110% satisfied, and that is my personal guarantee!"
Ellen attributes her impressive 80% property sales rate to her relentless drive and work ethic. Working around busy schedules, offering multiple open houses, hosting Broker Lunches, as well as spending a considerable amount of time and money in advertising are just some of the ways Ell en makes sure her client's listings get maximum exposure.
Ellen's view when it comes to home buying is: A home is not a home because of its room dimensions or the color of the walls. It is about how you feel when you walk through the front door, and the way you can instantly envision your life unfolding there.
Ellen resides in Ocean County, NJ with her husband and five children.
"I appreciate the opportunity to earn your business and look forward making your experience buying or selling a pleasant one. Invite me in and let me show you what your home is worth and how I can get you top dollar!" - Ellen Dell'Alba
Real estate market data for Jackson, NJ provided by Ellen Dy
"The most important decision you will make when selling or buying a home is choosing the "CORRECT" real Estate Agent. This was our first house, so we had no idea what we needed to do in order to sell. We called Ellen Dynov-Dell' Alba from Keller Williams Realty. Ellen meet with us at our home. She gave us a booklet with her proposal/ philosophy in selling, and a detail of our property. We knew within the first few minutes of meeting Ellen, that we had contacted the right agent to sell our home. A statement in her booklet was "The First Impression is The Best Impression." This is what she does for you, by having a professional photographer take outstanding pictures of the home. Pictures are one of the most important part of selling a home.
Ellen was always taking care of our needs throughout the entire process of selling our home. She was sincere, honest, and offered incredibly high levels of service. Ellen went above and beyond to get the job done. She was always prompt with communication via e- mail or by phone. Ellen was incredibly knowledgeable, professional, and caring. She communicated throughout the entire process of selling our home.
If you are looking for an Awesome, very hard working real Estate Agent, you would be INSANE, If You DID NOT Want, ELLEN on your side!!! Ellen is a highly respected Realtor"