On this months October Recap and November Predictions, we answer the main question everyone is asking…
How will the election affect the real estate market???
The short answer is yes… it will affect the market however not in this doom and gloom way that everyone seems to imagine. Instead of
drawing assumptions of which party will tax us more, or remove real estate buying incentives, and how that will affect the market, we went back to look at the data. Sure enough over the last 4 elections we’ve seen almost no change between pre & post election. The 1 thing we did see was a slight (and I mean slight) slowdown in October & November during an election year. About a 5% slowdown compared to non-election years.
Mass Exit from Inner City!
Yes you heard me right! Over the last decade we have finally seen our inner cities be rejuvenated and people returning to the city life. In San Diego we have seen communities like North Park, Normal Heights, & University Heights make significant progress and see substantial price appreciation. However, one thing that came with Covid was the need for more space. We are seeing people in high volume seek houses, yards, extra bedrooms & home offices, things that are just hard to get in the inner city.
Where is the opportunity?
When it comes to buying we definitely think the inner city attached properties is where the opportunity will be. We believe we will continue to see this trend of people needing more space and moving to the suburbs well into 2021. But with that will come plenty of condo owners who need to sell their property in order to buy that next home. This should cause inventory levels for attached homes to increase, possibly just enough to get a decent deal 😉
When will this market slow down?
There is only 1 thing that can truly slow down our market… and that’s interest rates! The Fed has already come out and said they plan to keep interest rates low for the foreseeable future, but that could mean First quarter next year, second quarter, or never! We just don’t know when they will make this move. However, when this does happen is when we believe this market will drastically slow down. But DON’T expect prices to come down… because once everyone refinances at 2.5% and makes purchases at 2.75% who do you think will actually sell? Shoot why would they ever sell with that low of an interest rate? We firmly believe that inventory here in San Diego County will remain low for years to come because of this which will cause home prices to stay where they are and possibly… continue to climb!
We hope you enjoyed this article!
If you ever have any questions at all… please reach out to us!
- If you are thinking about buying or selling we would love to help!
- Visit us at TrueLocalRealty.com
- Or give us a call at 888-503-3117