Just a few months out now from a major election in the United States, the eyes of the world will be turning to Washington as a politically polarized nation heads to the polls.
But what does the election of a new leader in the United States mean for the country’s real estate markets?
Quite a bit, as it turns out.
It’s common knowledge that the American stock market is often volatile during an election cycle. Investors don’t like uncertainty, and a looming election provides nothing if not uncertainty in the “Land of the Free and the Home of the Brave.”
But did you know that real estate can also face challenges during an election year, particularly in areas where the race is close? And it doesn’t just have to do with the presidential race, but local and state races can also affect the markets.
In a edition of the Wall Street Journal published a few years ago, the newspaper referred to research conducted by Princeton University economist Brandice Canes-Wrone that looked at election year housing sales in 35 states between 1999 and 2006.
They found that home sales fell between two-tenths and three-tenths of a percentage point during an election year, or up to a half of a point in states where the race was especially close.
In a similar study by real estate site Movoto in 2012, analysts found that home prices rose by just 4.5 percent in election years, but rose between 5.3 and 6 percent in the years before and after an election.
What does this mean in Delaware? Well, only time can answer that question, but we at the Oldfather Group think it means opportunity.
If you’re a buyer looking for a new home, it could very well mean less competition for that dream house at the beach you’ve always wanted.
And if you’re selling your home, there’s really nothing to fear. While there’s historically a bit of a drop nationally during an election cycle, it certainly doesn’t mean that homes are not selling. And as anyone who has lived in southern Delaware for any length of time can tell you, our market is unlike any other in the country.
We have a committed team of real estate professionals working for us here at the Oldfather Group, men and women who know the local area intimately and know how to get top dollar for your home.
So give us a ring at 302-260-2000 and let us do what we do best. Whether the Democrats win the White House this fall or the GOP stays in power, regardless of who occupies the governor’s mansion in Dover, no matter how wide the Democratic margin is at Legislative Hall, all that matters is that we’ll work as hard as we possibly can to sell your home, or put you in the home of your dreams.
It’s what we do!