As the hour draws near for the American people to choose their next president, uncertainty awaits the U.S. economy. Every sector in the economy will be affected. Election years typically draw a cloud of confusion over the stock market and others. The real estate market is no exception. Housing prices and mortgage rates will all be affected in some way. But how does this translate for the average homebuyer? What does this rocky economic stretch lead to?
How election years affect the real estate market
If you look at history, you can find that election years are good for home buyers and there’s a reason for this. The year before, during, and after an election, appreciation typically drops. Housing prices are slow to rise. The slow growth will affect the housing industry but will be a boon for bargain buyers alike.
It will be harder to sell during an election year
Despite the slow growth of home prices, many buyers will still hold off on making a purchase. This is typically due to the uncertainty that’s brought about by the election. The Myrtle Beach real estate market will be disrupted. There will be a decline in home sales before, during, and after the elections are over. This slump, however, will not last long and expectations will return to normal eventually soon after.
Property tax, deductions, and credits could be altered
Right now, property owners are enjoying tax deductions because of the Trump administration’s Tax Cuts and Jobs Act. However, these deductions that homeowners take advantage of can be thrown out the window as a new administration could undo the tax reductions. Removal of the tax reductions could deter homebuyers especially those who are only looking to buy their first-ever property.
Consumer confidence might get hurt
The overall health of the U.S. economy in 2016 saw an uptick. It is the health of the economy that drove consumer confidence in that particular year. The housing market and economic health are basically intertwined. This means that when the economy is looking good, consumers feel more confident to make large purchases like buying a home. On the other hand, the exact opposite could happen if the economy hit a bump in the road or if there’s a glum outlook ahead.
Elections can negatively impact home value
According to industry experts, home prices normally rise 1.5% less during an election year. Although it may not seem much the overall accumulated value will show that homeowners lose thousands of dollars per year.
Despite the fluctuations and confusion in the market, there will always be movement. If you wish to take your chance and find a good deal, talk to your real estate agent. When you look for a home, especially during these times where the elections and pandemic have greatly impacted the market, it is best to seek the advice of a market professional. Experts like Full Potential Real Estate can fill you in on the information that’s relevant to today’s real estate market. Without insider knowledge, buying a home would be like taking a step in the dark; you wouldn’t know what to expect.
Don’t know what to expect in today’s housing market? Buying a home isn’t entirely difficult if you get the right advice. Call Full Potential Real Estate today for more information on our services. You may reach us at (843) 236-0203.
Full Potential Real Estate, LLC
Myrtle Beach, SC 29577