Housing Prices and Elections
Both home buyers and sellers are concerned about the impact an election has on the real estate market. In a recent study by California Association of Realtors, it was found the elections had very little impact on housing. CAR did an analysis of home sales dating back to 1990.
“CAR found that the average change in home sales during an election year does not follow a particular pattern. Notably sales growth is rarely negative during an election year, and there is no evidence of a systematic negative impact on home sales or prices stemming from election season.
In fact CAR found that growth in home sales at the end of an election year actually outperforms non-election years by 7.1 percentage points.On a monthly basis since 1990, California home sales contracted by roughly 2 percent during the last four months of the year. However, during the past five election cycles, sales in the final months of the year picked up, rising by 5.3 percent on an average compared to 1.8 percent during non election years.”
The research would indicate that not during the election year were prices effected and the rise of house prices during the end of the election year may be due to knowing what the current economy is versus the future economy?
Source: Realtor Magazine Aug. 2016 Issue
Filed under: Real Estate
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