Real Estate and the Election
– not quite the Shakespearean tragedy everyone depicts.
As a Buyer during an election year you may see yourself as the flawed main character in a Shakespearean play doomed to certain death. You go back and forth on whether the winning strategy is to wait and see or close your eyes and jump. You will do your due diligence and look at data because no one wants to make an uneducated guess when it comes to the biggest financial purchase of their life. How will each of the Presidential candidates potentially impact your new financial commitment? Here is what you are likely to find:
- Elections historically cause a decline in home prices.
- Elections cause a slight decrease in Home Sales. Inventory may be low.
- In 2016 home prices are expected to raise only 3%, this is down from previous years.
Quite the grim tale. At this point you are likely considering staying where you are, either renting, living at home or staying in a place that no longer suits your needs. As we are a society fearful of ambiguity and like to justify our decisions here are some other facts to consider in opposition of the grim tale above:
- Rental prices have increased 4.6% over the last 12 months. Rents are rising more quickly than home prices.
- Phoenix is number 4 on that growth list. Rental prices will continue to increase making it more difficult to save.
- House prices have historically rebounded 5.3% post an election.
- All things concerned the market will respond to a variety of factors including jobs, interest rates and consumer confidence. Real Estate is still the most sound long term investment. You are unlikely to be impacted by the decline in home prices attributed to an election unless you are planning on buying and selling shortly after. If it’s a home you are looking to establish the only factor to consider is your readiness.
Whether its a condo, townhouse, single family home, foreclosure, short sale or traditional sale partnering with a Realtor in the Greater Phoenix Area who has market knowledge and solid negotiation skills so you get the best deal and ensure your process of buying a home is certainly not a tragedy.
Written by Michele Lewis REALTOR
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