Over the last 12 months just about anyone who owns a home, or has been thinking about buying one has wanted to know how the 2016 Presidential Election would affect the Real Estate market. Now that the election is finally over, and we know what the political landscape will look like for the next 4 years, we can take a look at what the Real Estate market will look like in the next year and beyond.
When you study historical data for how the Real Estate market does after a Presidential Election the housing market often continues to perform strongly for at least the following year.
Thanks to statistics from the California Association of Realtors® we know that the market does especially well in California, following a Presidential Election and actually outperforms non-election years by 7.1%. (Source – mymortgageinsider.com)
Interest rates continue to remain historically low, near 4% for the time being, and the Federal Reserve doesn’t show any sign of raising them significantly in the near future in spite of the urging from investors and economic analysts to start raising interest rates.
If interest rates are increased in the next 12 months it’s not going to happen quickly since Wall Street doesn’t like change, or uncertainty, so if we see increases they may be in small increments of only a half percent or less at a time.
Stronger Real Estate Market
The 2016 Presidential Election was a lot different than the 2012 Election because of one big reason; back then the Real Estate market was still recovering from collapse in 2008 and new regulations in the banking industry were only just being implemented.
Thanks to the reforms in the banking industry we have fewer subprime loans than in years past and the market is now considered to be very stable thanks to the fact that more buyers being pre-approved for mortgages who actually have the ability to repay them.
Long Term Forecast
In spite of optimism or pessimism that some people may have following the 2016 Election, moving forward the biggest things that will continue to affect the Real Estate market are fundamentals like: home inventory, interest rates, affordability, job growth and consumer confidence.
If you’ve been waiting for the right time to buy or sell a home there’s never a better time than right now to make your move since should one of these factors change significantly in the next 12 months this may affect buyers and sellers.
We know where the market sits right now and our team of Real Estate experts can help you to buy the home of your dreams or sell.
To get started with buying or selling a home in Southern California contact Fred Sed Realty today by calling us at (800) 921-9231 or connect with us online.