Every four years people question what effect the Presidential election
might have on the national housing market. Let's take a look at what is
currently taking place.
The New York Times ran
an article earlier this week where they explained:
"A growing body of research shows that during presidential election
years -- particularly ones like this when there is such uncertainty
about the nation's future -- industry becomes almost paralyzed. A look
at the last several dozen election cycles shows that during the final
year of a presidential term, big corporate investments are routinely
postponed, and big deals are put on the back burner.
The research is even more persuasive on the final year of an
eight-year presidential term, when a new candidate inevitably will
become president."
We are seeing this take form in the latest economic numbers. However,
will this lead to a slowdown in the housing market? Not according to
Fannie Mae,
Freddie Mac or the
National Association of Realtors.
The Impact on Housing Throughout 2016
Let's look at what has happened and what is projected to happen by these three major entities.
"In spite of deficient supply levels, stock market volatility and
the paltry economic growth seen so far this year, the housing market did
show resilience and had its best first quarter of existing-sales since
2007."
"Recent data darkened the growth outlook for the first quarter of
2016. However, despite the disappointing economic reports, we still
forecast housing to maintain its momentum in 2016."
"Consumers and businesses showed caution at the end of the first
quarter...(but) Home sales are expected to pick up heading into the
spring season amid the backdrop of declining mortgage rates, rising
pending home sales and purchase mortgage applications, and continued
easing of lending standards on residential mortgage loans."
Bottom Line
Even during this election year, the desire to achieve the American Dream
is greater than the fear of uncertainty of the next presidency.
