We at Kim Cole Real Estate aren’t here to get political. We’re here to either sell your home at the best price or find you the home of your dreams. Sometimes both. However, with the voter registration deadline approaching on 10/19 and voting day on 11/3, it’s important to draw attention to putting our democratic obligation into action.
We encourage you to educate yourself on the issues, form opinions, and participate in healthy debate with both those that vote similarly and those that choose to differ. Whatever side you pick, we all need a home, and no matter the outcome of the election, the housing market is significantly affected.
Consider this historical data compiled by the California Realtors Association (and nicely outlined by RoyOMartin) on the effects of home prices the year before, the year of, and the year after an election:
- Home prices rose 6.0% in the year before elections.
- Home prices rose 4.5% the year of elections.
- Home prices rose 5.3% the year after elections.
What does this information tell us? Elections mean slower growth and a good time to buy. If you’re looking to sell, next year on average should be better for you to capitalize on higher prices.
Here’s another way to think about it. Most people don’t like instability. Most people don’t like risk. As a result of this common mindset, many interested buyers are holding off until after the election to avoid the risk associated with buying a home. In actuality this decision, based on the data above, might be a disadvantageous one.
Why wait in line to compete with other buyers when you can shop in a big store you have to yourself?!
We all want to score a great deal, but how do “deals” materialize themselves? Generally, you have to zig when everyone else is zagging. Buy the fixer-upper in the great neighborhood. Be an early investor in an up-and-coming area.
And buy when others aren’t. Like in election years. We have some fantastic opportunities right now.
Likewise, if you’re thinking about selling, wait if you can. There should be more buyers interested in the year after an election and therefore higher property values.
Whether you buy or sell, whether you act now or wait, register, research, and vote. Your residential future and the future of our country depends on it.