Donald Trump or Hillary Clinton?
Which candidate would be better for the Housing market?
How is this election affecting the housing market?
This presidential cycle definitely has an effect on the real estate market. We have seen a drop in buyer enthusiasm, as well as confidence in the market. Home prices have dropped, and the average days on the market have increased. It doesn’t seem to be drastic but it is noticeable, and many people believe that the election is either completely to blame or at least in part.
The truth is, the market has been ready for an adjustment or reset for a little while now. It’s not that we are in another bubble waiting to crash as many people think. The real estate market needs to adjust, pause and reset. It’s both normal and healthy…It is a good thing. Unlike a market crash, this is different. This slowdown is due to fear and uncertainty. Our two candidates are so polarizing that no one is confident of what will happen after the election.
No one seems to be happy with either candidate. Furthermore, the dislike and distrust for both is at historic levels.
The media is portraying this cycle as an election between an outsider with no chance, and an experienced seasoned politician running for the highest office in the land. They always site polls showing support for one or the other.
I just wonder…if they took a poll asking republicans, democrats, and independents if they wanted to start the entire cycle over again with two new choices, how many would say “yes”? I believe it would be at least 80%.
So which one is better for real estate??
Based on stated policy not politics…
The answer is neither. That’s the problem; Hillary’s economic platform is a nonstarter for most. 4 more years of economic stagnation for most of the economy is a bad thing. However, Donald Trump just might be worse. His isolationist polices will lead to trade wars and tariffs, and eventually a recession.
So why am I optimistic for the housing market you might ask?
It’s simple! Real estate is the best protection against recessions and economic uncertainty. The second reason is that interest rates will be rising, and as soon as that happens prices should begin to rise.
All markets are cyclical. We will get through this, and the housing market will be on the rise again.
In short, don’t let fear keep you out of this market.
Real estate is always a good investment.