Monday, November 14, 2016

Real Estate Values After an Election

Whether you believe that our long national nightmare has ended, is just beginning, or is somewhere in between, we can all get behind the fact that real estate values have been depressed in an election  year, historically, and therefore the years after presidential elections are good ones for value.  The attached chart shows the trend over multiple election cycles.  The most likely cause is uncertainty, which is probably why the stock market dipped right before this election and rebounded afterward, when the orderly transfer of power seemed much more assured.

Since uncertainty is bad for real estate, the opposite should be true, no matter what the certainty is.  Therefore, it wouldn't matter what opinions people held about the outcome, only that the outcome is now clear.  This leaves a window, before values likely go up next spring, when buyers should try to benefit from both the season, and the current lower prices.  The window of opportunity is apparent, so act now, before it closes.