Does the Presidential Election Affect Redondo Beach Real Estate? Well, yes and no depending on who you ask.
The question I've been getting more frequently over the past few weeks is what effect the coming US Presidential Election may have on Real Estate. This has almost supplanted "how long has it been on the market" as to the number one question at open houses these days. Really. So let's take a look at a few data points and what is going on. About the election that is.
Let me start off by saying that this blog post is not based on my political views and is not meant to support any party. There is no doubt that election years do have an impact on the housing market. All you have to do is go back in history and you will see a very clear pattern during election years. This year will be no different. While I am not saying that there is going to be a dramatic shift, I do feel that as we approach November, consumers that are considering buying or selling might wait until they know who has been elected.
More important though, are the underlying data points that drive Real Estate ups and downs.
- Housing is fueled by demand– the demand for housing right now is so strong because we have never made up for the lack of new construction we have had over the past seven years. This will help to bolster the housing industry.
- People need a place to live – it doesn’t matter who is in office - everyone needs a home, a place to live and call their own. Homeownership rates have risen showing that people want to own again. There is much speculation that the only reason the homeownership rate is not even higher is due to the fact the people are still repairing the credit that was damaged during our housing crash.
- Employment – both candidates have talked very openly about their plans to continue to improve the job market, jobs are what are needed to keep our housing industry strong.
- New Home Construction – this is the area I watch the closest to answer many of my questions about the housing market. In the latest Census Bureau Report sales of newly constructed homes soared to its highest annual rate in eight years in June. This clearly shows that the demand for homes is strong and the desire for these homes is at an all-time high. If you don't believe me just drive around Redondo, Hermosa or Manhattan Beach CA and take note of all the homes being built.