During an election year, there can be uncertainty and insecurity with the economy that causes people to be hesitant to buy a home. Let’s face it, the election is here and there is going to be at least half the country upset with the outcome no matter who wins. The good news is that two things always happen in an election year: the gas prices go down and so do the interest rates! These are both great things for consumers. So what should you do?
Tips for buyers
If you are looking to finance a new home for yourself this will allow more buying power and most likely less competition. Typically the market
slows down in the fall, in the Mid-South anyway, but in an election year that is even truer. Realtors, like me, who have been around a few election cycles will tell you that the buyers will be more scarce during October and November of this year than the previous non-Presidential Election year. Although the housing boom is in full swing, there is a feeling of unease as we go into fall with the elections around the corner.
Tips for sellers
Is it a good time to list your home? According to a study cited by Realtor.com that tracked election year pricing from 1980, housing prices rise 1.5% less in election years than other years. Although, this small bump is probably not significant enough to keep you from selling if you really wanted to it is something to consider. Also, if you are in the market to buy a home after selling yours you can recoup that saving by taking advantage of the historically low-interest rates offered in today’s market.
So the old supply and demand adage that we all learned in high school Econ class always holds true in real estate. Also, all real estate is LOCAL, even if the election is national. If there are few homes on the market in your area, the advantage will go to the seller but if the market is flooded with homes in the advantage will shift to the buyer. Consult a real estate professional in your area to determine what is best for you today.
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Here are a few questions to ask:
- What is list price to sales price ratio? If it’s 99% you can bet it’s a seller’s market.
- What is the Days on Market Average in the area? Anything over 3 months will indicate an advantage to the buyer.
- If listing your home, ask the agent how many months inventory is currently listed. If there are 6 houses selling per month on average and 36 houses on the market then that creates 6 months of inventory. This will give you an idea of the competition that is out there and how long to expect to sell your home.