Buying a Home in an Election Year

Blog posted On October 25, 2016

Presidential elections tend to slow the housing market.  In a contentious election like the one we have ahead, many potential buyers are wondering – “should I wait until after the election to buy a home?” 

The political climate has an impact on the economy.  Unfortunately, with the economy being underrepresented in this election cycle’s debate, we don’t have a clear idea of what that impact will be.  However, waiting until post-election when you are ready to buy a home may not be necessary.  According to a historical study of real estate in California, housing prices rise 1.5% less during election years than other years. 

With other buyers delaying home purchase due to an uncertain political climate, active buyers have an advantage in the negotiation process.  Less offers give you more leverage in price negotiation and a slowed market gives you a better chance of locking an interest rate.

Famous investor Warren Buffet says, “be fearful when others are greedy, and greedy when others are fearful” or do the opposite of what everyone else does.  With other buyers on the bench, this could be your opportunity to secure a lower price for the home of your dreams.  If you have any questions about your options, please let me know. 

Sources: Homes.com, Realtor.com