With the midterm elections nearing have you ever considered the impact they have on real estate sales? Or even questioned if they do make sales go up or down? Well . . . kind of. Elections can impact consumer behavior, particularly when considering large purchases, which does have a big impact on the real estate industry.
Besides the psychological impact, pending legislation can also drive or slow sales in an election year. So, let’s take a look at what impacts the real estate market during the election year.
1. Fear and uncertainty make consumers more conservative.
During an election year, home buyers tend to be less willing to buy or sell because our sense of uncertainty, and sometimes fear, is aroused when there is a transition of power or potential new legislation that serves as a check on many consumers. The human response to fear and/or uncertainty is to essentially hunker down.
2. Potential new legislation can impact sales.
If there is measure on the ballot that could impact property taxes or property values, it can drive the market, either pushing people to buy and sell more before the election if it is favorable to them. Or it could create a stalemate of sales as buyers and sellers wait for election results.
While elections do have an indirect impact on the real estate industry, our economy and political infrastructures are strong and help navigate the local and national uncertainties that arise during election years.
Having a realtor on your side who understands the market and wants to help you find the home of your dreams is important. Don’t hesitate to set up a time to meet with me if you’re looking to buy or sell in the greater Nashville area this winter.