John and Anthony Discuss How the Election Affects the Real Estate Market
Related blog post: A Comparison of the Romney and Obama Housing Plans
Welcome back the race for president can creep into nearly every discussion right now even into real estate, if you’re on the market for a new home or if you’re looking to sell you might be saying to yourself, I want to wait and see who wins before I do anything so is this the right approach and who better to ask than our real estate experts, John and Anthony from Lamacchia Realty , good to see you guys.
So we are a couple of weeks away from the presidential election so some people might want to see what’s going to happen first right approach or no?
Definitely not the right approach
Waiting to see is the wrong approach, your home isn’t going to be worth any more or less today or November 7 the day after the election, there’s too many factors that come into it, regardless of who wins, Republican or Democrat, it doesn’t matter, there’s too many things that affect the real estate market to have something like a change of president or to have the same president affect it, it simply doesn’t’ work that way
Yeah I agree with that, I mean you’ve got the biggest drivers in real estate right now are inventory and interest rates. We don’t’ see any of that changing the candidates or the incumbent and the potential candidate they’re both saying that rates are going to stay low for quite some time that’s going to continue hopefully to keep this market moving up you know and get out of these doldrums that we’ve been in for the past couple of years
So what impact would it have, in any area what does it have?
I don’t think it has any. Each candidate has talked about coming out with different policies, but if they do come out with something new or support some of the existing things it’s a lot of time before something comes into play we’re talking about millions of homeowners across the country, millions of people with mortgages, things don’t just change overnight.
And John you made mention of this, with the interest rates, but if you want to see the candidates policies on the real estate market you can go to their websites and see them online, so should there be any concern about interest rates at all changing depending on who gets in?
No, because it’s not really a president’s decision to say hey let’s raise or lower, it’s much bigger than that. Federal Reserve is telling us or at least what we’re reading that we’re looking to see rates stay fairly low up until what is it, 2015.
They said 2014, then their latest meeting in August, they just put the minutes out last week, they again said rates are not going up until 2015, they’re doing that intentionally to make people feel more secure, and they’re also doing it, I think, intentionally to show people it doesn’t matter who the president is, it’s the Federal Reserve that makes the decision on the interest rates. That’s why the affordability for housing right now is better than it’s been for 10 years. And I think things are going to stay strong if someone is looking to sell that’s where we’re seeing some hesitation form sellers –the buyers are still buying but I have heard that some sellers in the last few weeks or a couple of months say things like, well I’m going to wait to see who wins, and I say, I got news for you, it doesn’t matter who wins.
So grand illusions, there’s really no fact to that is what you’re saying, I’ll wait and then put the house on the market.
Selling a home is a big decision, so it’s more as we talk about in the office it’s a life decision, it’s not a factor of who wins an election it’s once again much larger than that. We say don’t wait, if it’s time to sell you sell now, if next year makes more sense then that’s when to sell, but don’t hedge it on who wins, Democrat or Republican. It doesn’t make any sense.
We’re in the fourth quarter of the year here, the holidays are coming up it’s going to be a bit of a slow time trying to coordinate buyers and sellers, what are you guys seeing in the market here?
Well usually things start to slow down a bit after Thanksgiving and more around the holidays, so I think we’ll be on a similar trend this year to every other year. Weather is the biggest factor, last year we got lucky, we had a real light winter, but then I heard some report last week that we’re going to pay for it this winter so I hope that’s not true. But weather has a bigger factor I think in around the holidays so if someone wants to sell there’s a lot of time to sell between now and the holidays and even after the holidays pass you can sell them or buy doesn’t matter a whole heck of a lot.
All right John and Anthony we certainly appreciate the perspective
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