Elections=Uncertainty But The Housing Market Is Strong!
What you may not know is that presidential elections themselves can affect everything from mortgage rates and housing prices to stock market values and corporate investment. A range of studies show that during a typical election year, the uncertainty produced by the race can have more impact on housing and the economy than the actual outcome in November.
Unfortunately, the main byproduct of presidential elections is uncertainty, especially elections in which an incumbent isn’t running. As a rule, markets don’t like uncertainty, the uncertainty of who will win and of what an inexperienced politician might do in office. For this reason, business investment and stock markets often become sluggish, and industry can become almost paralyzed during election years. Particularly when the outcome is likely to affect regulation, taxation and trade policy.
The good news: The U.S. housing market is stronger than it was during the 2012 election, and so is the overall economy. In November 2012, home sales were rising, but the market was still recovering from the economic downturn of 2008. By comparison, home sales through May 2016 have seen the biggest increase since 2007. According to the U.S. Census Bureau, the median value for new homes sold in June 2012 was $232,600. By June 2016, that figure had soared to $306,700. What this means for someone looking to buy or sell a house is don’t worry about the election affecting the housing market! Everything will be alright and the election should not affect housing prices whatsoever.
Written by: Robert Judy