2018 political outcome and its effect on real estate. Did it have any? Moreover, if so, what was it?
Sometime before the 2018 November elections, I posted a video about talking to people on this matter. The general opinion was that many homeowners were waiting for the elections to end to decide to sell their home or not.
So the fact is, and remains, that the 2018 political outcome did not affect the real estate market. Therefore, deciding to sell or buy based on political outcome do not correlate whatsoever.
Yes. The market has changed significantly given that sales volume during the holiday season has been the slowest when compared to the prior three years.
Prices have not gone down.
Only sales volume has. In other words, the number of home sold over this same period has significantly diminished with no adverse effect on home values.
Economists attribute this change to two variables. First, although we remain at historically low home mortgage interest rates between 4% and 5%, they are about a point higher than a year ago. This may not seem like much, but it is having an impact.
Second, although wages have gone up slightly, we have reached a point of what you may have heard as “lack of affordability.”
In other words. As much as someone may be willing to pay what you are asking for your home, buyers’ wages prevent them from doing so. This is across all income levels for homes below $2,000,000 – which is practically the entire United States.
2018 political outcome did not affect real estate. This is not to say that future political events will not have an impact. However, the effect is usually felt months or years after the election season.
Thinking about selling and still have doubts about the political landscape? We all do.
Contact us, and we’ll gladly shine perspective to help with your decision-making process.