Editor’s note: This article was first published in November 2020, shortly after that year’s presidential election.
Every presidential election leaves buyers, sellers and investors asking the same thing: is this a good time to be in real estate? After the 2020 election, opinions differed on how much the campaign season had affected the market. Here’s a look at the main views from that time.
A buyers’ market?
Some observers pointed out that home prices tend to rise slowly in election years, which can make them a good time to buy. Sellers faced the other side of that, with uncertainty about the economy under a new administration. One campaign proposal was a set of new first-time homebuyer and down payment assistance programs intended to lift the market.
What investors were watching
In 2020, investors were weighing possible tax changes. Depending on the outcome, they could have lost some ability to use real estate losses to reduce their tax bills. Proposals to raise capital gains taxes were also under discussion.
Energy efficiency credits
There was also talk of incentives for homeowners who switched to cleaner, more efficient energy, in the form of tax credits for making the change.
Confidence matters most
Underneath all of this is consumer confidence. When buyers, sellers and investors feel good about where the country is heading, they buy and sell more. That holds in every election cycle, whoever wins. For the historical pattern, see our earlier post on buying fix and flip properties before an election.
If you’re planning to buy, it makes sense to sort out financing early. Sachem Lending provides financing for challenging and non-traditional real estate loans, with personal and responsive service. Review our loan programs or get in touch with us today.
