As the 2016 presidential election nears, several areas of business are often effected such as commerce and the economy. But the question remains, what effect will the election have on the national housing market?
Real estate activity tends to reflect the health of the U.S economy, and most importantly, consumer confidence. Will this lead to a slowdown in the housing market? Not according to these major entities.
According to the National Association of Realtors
“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.”
According to Fannie Mae
“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.”
According to Freddie Mac
“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.”
The outlook for the national housing market remains promising in 2016 as the desire to achieve the American Dream is greater than the fear of uncertainty of the next presidency. Consumer confidence remains the driving force. Mortgage rates and the stability of the job market, both of which are positive, are examined by consumers and ultimately lead to the confidence level while the presidential election merely reflects the state of the Union.
Predicting the future of the economy and the housing market is always tricky but no matter the economic condition, buyers and sellers still have pressing reasons to engage. It is best to seek advice from a trusted real estate professional who will take into account the details of every situation thus helping you make an informed decision.