Inventory is finally back to normal levels and interest rates are coming down. What is keeping so many buyers on the sidelines? A typical answer to that question is, “I think I’m going to wait until the election is over and see what happens to the market”. We understand that stress is high during this election cycle and the country is extremely divided, but what are the facts? I won’t get into politics, but I’ll share some real statistics about the subject that you should find interesting no matter what side of the aisle you are on.
Home Sales
While this is typically a slower time of year for South Florida real estate, election years are even slower. However, according to NAR data, home sales went up after 9 of the last 11 presidential elections. So, it is likely that activity and competition will increase after the election. If you are a buyer who needs to buy, you might want to jump in to the market sooner than later.
Median Sale Prices
So what happens to sale prices? In 10 of the last 11 years following a presidential election year, median sale prices went up. The only exception was 2008 and that was the start of the great recession. Yes, inventory has recovered which means sellers don’t have the advantage they have enjoyed in recent years. However, history shows that we should expect prices to go up next year. With the busy winter season right around the corner, perhaps now is a great time to get into the market.
Bottom Line
The bottom line is that there are plenty of factors that affect our real estate market, but the affect of presidential elections is fairly insignificant. Home prices and sales volume are primarily driven by basic supply and demand. For buyers looking to enter the market, interest rates, available inventory and affordability are all factors you should be considering. Your real estate agent and mortgage banker should keep informed about all of these factors and help you to understand what is going on in your local market. If you decide to wait until after the election, don’t wait too long. Things change quickly here in South Florida.
