Businessman hand protect and stop wooden house from domino falling wooden bar for risk management and analysis of real estate concept.
The influence of election uncertainty on the property market cannot be overlooked.
As the upcoming elections draw closer, rumors are rife about property owners holding back on selling their properties, waiting for the outcome before listing them on the market.
This political uncertainty has the potential to influence the property market in various ways, prompting a closer examination from a real estate perspective.
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Prospective property owners may perceive the period leading up to an election as a time of heightened unpredictability, leading them to adopt a wait-and-see approach before making significant decisions.
Blake Realtors’ William Blake watered down the speculation that property owners are holding back on selling their properties due to election uncertainty. On the contrary, he said buyers are rather the ones holding back from acquiring new properties.
According to Blake the property market is more infiltrated with sellers now, as compared to buyers.
However, with proactive strategies and a thorough understanding of market dynamics, buyers can navigate this period of uncertainty and make informed decisions regarding real estate holdings.
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The realtor said reasons for property owners are holding back on selling during election uncertainty are multifaceted.
“They don’t know what’s happening, they don’t know who is going to win this election. I think they are just scared that the interest rates are going to skyrocket,” said Blake.
Furthermore, the potential for changes in government policies, particularly those related to real estate or property taxes, can create a sense of unease and reluctance to commit to a sale.
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Additionally, concerns about market stability and the overall economic impact of the election can contribute to a cautious approach.
Blake shared that one of his clients recently switched to a rental option as opposed to buying property.
The client’s concerns were that they are unsure of what will happen and would rather rent for a year before making the commitment of buying.
Election uncertainty can have a significant impact on both buyer and seller confidence. Buyers may adopt a more conservative stance, preferring to wait for a while to make substantial property investments.
Conversely, sellers may feel apprehensive about the market conditions and the potential impact of election outcomes on property values.
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Historical data reveals that election-related market trends are not uncommon.
Following the election, there is typically a period of adjustment as market participants react to the outcome and its implications for the real estate sector.
To navigate election-related uncertainty, property owners can consider several strategies.
Firstly, Blake said it would be better to just show market participants, especially buyers, the historical data which shows that things eventually go back to normal.
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“It takes maybe two or three months and then everything will start going back to its normal state.
“Nevertheless, 2023 and 2024 were extremely hard for the property market,” he added.
Additionally, seeking professional advice from real estate experts can help property owners make informed decisions about listing their properties or adjusting their investment strategies based on the election outcome.
Diversifying investment portfolios and considering long-term market trends rather than short-term uncertainties can also help property owners mitigate the impact of election-related uncertainty on their real estate holdings.
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