After every election conducted within the country, the first question that hangs on a thread is how would it affect their overall economic standpoint? Truth be told, the elections can easily manipulate how the rise and fall of the economic status within the country in a matter of days. Once the ballots are counted and the new president is elected there may be a gradual shift in the trend.
When we talk about a gradual shift, the standpoint and overall decline of a business can be seen in a matter of days. The real estate industry on the other hand, which we would want to focus on in this blog shows a great deal of slow-down in the coming months. However, does that dictate the failure or loss of investment within the industry? We can’t easily predict that the change would lead to failure, and neither can we assume that there wouldn’t be a significant change either.
With the studies and polls being done throughout the days after the declaration of the new president in the United States, we can definitely see that there will be a shift in the trend and the effect may suggest a minimal change.
Here are some of the reasons why the elections can affect the real estate industry to ensure that you are still on top of the trend and you may avoid future and probable losses.
The First Year Is Usually A GOOD YEAR
With every election, especially in the United States, the numbers dictate that the increase in home sales occur during the first quarter of the newly elected president. The potential of home buyers being wary of what can happen after the elections would only cover a small percentile in doubt in investing for properties. On the other hand, there is a huge increase of people who are interested in taking advantage of properties up for grabs after the elections.
It may come as a surprise or a vague statement as to where we would stand in terms of rising or diminish demand. We can simply understand the concept as people being weary throughout the elections would raise the number of distressed and motivated sellers while the number of real estate investors or buyers rises along with it. It would make the exchange impactful and showcase no loss in the economic exchange alongside a rise in the need of providing for the market and its buyers.
Amidst the significant change in presidency and leadership, mortgage prices and affordability have yet to show a cease in operation. As discussed in previous trends and changes from an economic standpoint, the real estate market will prevail otherwise. People, or motivated sellers before the elections amidst the ongoing pandemic have already shown a huge gap in demand, coupled with the idea that the rise will continuously and miraculously grow over the first year shows promise in the industry.
Federal VS. Democratic
From a political standpoint, the difference between democratic and federal ways showcases growth in providing the needs of the people. A federal form of government, with all honesty, suppresses the potential of consumers and the people itself. Compared to a democratic practice wherein the voice of the masses may change or shift a market. The real estate industry is provided with an opportunity to utilize and maximize the new form of government that will be practiced in years to come.
The newly elected president also plans to further the cause of providing opportunities for first-time homebuyers and providing for members of the workforce within a society that have difficulty affording their own property. With that being said, it shows promise that the rise in sales for properties in all varieties will be pivotal after the said application from the elections.
The bottom line is that the presidential elections may affect the real estate industry and other forms of markets within the society and country. However, it does not show any negative implication in line with investments and overall sales. Consumers will always have a need, and as a business, it would be our sole responsibility to provide and amend these needs.
The slow growth within our current economy is exemplified by the ongoing pandemic, yet we can see steady and slow growth over the months and days to come.
Therefore, it is pretty evident and inevitable that tall forms of businesses within the United States will have a shift in demand and supply. How we approach the matter as entrepreneurs will surely affect the growth and overall standpoint from the economic perspective.
Keep yourself up-to-date about the trends and take opportunities to grow. Make learning a continuous journey by watching and joining our webinars at REIQ Events!