Will the presidential election impact the market?

In the past, Presidential elections have not made much of an impact in the housing market. According to a recent DSnews report and a Redfin survey, this Presidential election may be a different story. Most experts do not believe it will have long term effects, although the COVID-19 pandemic could. Home sales are expected to continue to grow through the fall due to COVID. Redfin is predicting that more homes will sell in 2020 than in any year since 2006. The survey that Redfin conducted found that 22% of homebuyers and sellers said the presidential election is impacting their plans to buy or sell. 13% of respondents said the election is making them more hesitant to buy or sell a home. 9% of those surveyed responded that the election is making them less hesitant to buy or sell. 65% of potential homebuyers and sellers said the election is not impacting their future plans. 75% of buyers and 50% of sellers reported that COVID-19 is impacting their plans to move this year. 21% of sellers said the pandemic is delaying their selling plans, 19% said it’s accelerating their selling plans, and 10% said they’ve decided not to sell.

WHAT ARE AGENTS SAYING ABOUT THIS NEW INFORMATION?

Overall, most real estate agents are not very concerned with the slight shift in the market due to the election. Pruitt stated, “Almost all the buyers I work with ask how the election could impact their home purchase, I don’t have a crystal ball, but presidential elections have never seemed to affect the housing market much in the six election cycles I’ve been a real estate agent. The pandemic is having a much bigger impact, with low mortgage rates motivating buyers who want more space to work from home”. On the other hand, agents such as Danielle Field, are experiencing pre-election stress. Field stated, “Some home sellers—and buyers, to a lesser extent—are delaying their plans because of all the stress and uncertainty in the world, including the divisiveness surrounding the presidential election, they don’t want to add one more stressful experience to their lives. I’m hopeful that once the election is over and there’s finally some certainty in this country, people will start putting their homes on the market again, creating more inventory for buyers.”

Click here to read the full DSnews report and learn more!