Even though many states are practicing social distancing, people are still interested in buying houses. Interestingly, historical data suggests that we’ll see a decline in this interest as we move closer to presidential election day. According to Meyers Research, new home sales tend to drop in median sale activity by 15% from October to November, when the nation chooses its president.
Why? It comes down to a fear of the unknown: a new president may increase taxes, or work to change certain homeowner regulations. Aside from housing-specific concerns, many would-be buyers may worry about their job security. While the president of the United States is not all powerful, lower and middle class citizens may feel that a change in regime could cause budget cuts in many business sectors.
Demand for Houses Will Increase After the Election
According to Ali Wolf, Director of Economic Research for Meyers Research, “In December [following an election], and in the following year, the sales that are lost during November are recovered.” This rebound is instantaneous. While people may be skeptical to buy before the election, they’re still likely to browse. Once the new president is sworn into the oval office, buyers pull out their wishlist of homes that they’ve been carefully cultivating during the months prior.
Builders & Investors: Buy Now To Fulfill Demand Later
History teaches us that demand for houses increases after the presidential election; therefore, to maximize profit, builders and investors should buy now. If you’re in need of speedy funding, then we’ve got you covered. We offer hard money loans for new construction, fix and flip projects, long-term rentals properties, and more! To get started, submit your application today!