Why Election 2016 May Be Benefiting You
Election Years Can Provide Opportunities for Buyers
Text: Wesley Holland
With the recent completion of two conventions, politics and election 2016 is at the forefront of the minds of many as campaign season will soon be in high gear. Election years can be challenging for investment in many segments. All one has to do is open any major publication to see myriad headlines for stories about how the stock market, business, and real estate will fare given each candidate winning.
Campaigns impact consumer psychology because of the element of uncertainty that characterizes an election year.
One thing is certain in election 2016: Uncertainty
Uncertainty seems evermore present in this election cycle, and it is something that strongly affects consumer behavior. If you can accept a little uncertainty, you may be able to find great real estate opportunities in the 2016 election year.
This is an especially interesting time to think about the opportunities that may exist as we are also in the middle of the summer season, another time of the year that can yield buyers with great deals.
Election uncertainty can reduce the number of market participants and the summer season historically has a lower participation rate than other times of the year.
Thus, sellers do not have as many potential buyers knocking on their door, and begin to become desperate if their property did not sell in the spring. Additionally, some become more concerned with the election looming in the near future. This combination gives the buyer an upper hand in negotiating, often times getting a great price on the property.
Looking back at previous election years, 2008 was most notably defined by fear as we overcame the crippling economic events of that year, which seemingly paralyzed both buyers and sellers. Transactions slowed and financing was difficult to obtain.
As 2012 approached, markets were slowly stabilizing. And as we sit here in 2016, there is still a sentiment of underlying uncertainty even though housing prices have made a decent recovery.
As a buyer, I encourage you to consider this election year a prime opportunity to score a great deal. The market is in your favor, as uncertainty keeps market participation down overall, so sellers do not have as many buyers knocking on their door.
Read more in our August Monthly Newsletter. Get your copy here