How can elections change market cycles?
The year 2020 has been filled already with uncertainty and many ups and downs both in the economy and the real estate market. But November has one more hurdle for the housing market.
The closer the election gets, the more we are seeing its effects on demand for housing. While a seasonal drop off in home sales is generally expected in November, research shows that this drop is greater during presidential election years. Why?
Consumer confidence plays a big role in a person's decision to buy a home. In general, presidential elections mean more uncertainty in the housing market. Presidential elections often mean change and this change and uncertainty may make buyers hesitant to make big decisions.
The good news is that these sales are generally not lost but only delayed until after the election. Although the outcome of the election may affect certain regions, in most cases the post-election rebound is quick as demand piles up among those waiting through election uncertainty.
With mortgage rates still at all-time lows, chances are good for the real estate market to remain strong following the election. Until then, it's important to base any housing decisions on reason rather than emotion.
An experienced real estate agent can help you stay objective during this emotional process and guide you through these uncertain times in the real estate market. Give our team at Harnish Properties a call today.
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