Letter From The Editor
How Election Years Can Impact the Real Estate Market “F ollow the numbers and let them help you tell the story.” That is some of the best advice one of my mentors gave me. Interpreting data can be daunting, especially when you consider the many unknown variables that come with an election year. There are multiple opinions and interpretations of data and which trends to follow. These trends can be influenced by various factors, including political uncertainty, economic policies, and the overall feel of where the market is trending. Several real estate topics become particularly relevant during an election year because political outcomes can significantly impact the market. Here are a few notable areas to keep top of mind: 1. POLICY IMPACT. The outcome of the election can significantly impact real estate markets, depending on the policies of the elected government. Investors may analyze candidates’ positions on taxes, housing, infrastructure, and regulations to predict future market conditions. 2. INTEREST RATES AND MONETARY POLICY. Interest rates often fluctuate in response to economic conditions during an election year, affecting mortgage rates and real estate financing. Interest rates have been a hot topic of conversation during the last few years and have the potential to impact housing affordability significantly. Decisions made around interest rates influence mortgage rates, borrowing costs, and overall real estate market activity. 3. IMPACT OF TAX POLICIES. This is a big one. As a homebuyer or real estate investor, it is imperative to analyze proposed changes to property taxes, capital gains taxes, and tax incentives. Changes in these areas can directly affect the affordability of owning real estate and may influence how and when to buy and which investing strategy is most beneficial. 4. AFFORDABLE HOUSING AND RENT CONTROL. There is constant debate and policy reform around affordable housing and its potential impact on landlords, tenants, and the housing market. As a real estate investor, it is imperative to understand each prospective candidate’s housing policies, including affordable housing initiatives and tax incentives. Think Realty’s Government Relations Committee is committed to paying close attention to upcoming policies that may be modified and how potential changes could impact real estate investors. It is important to stay abreast of these topics to navigate the uncertainties of an election cycle, know when to pivot (if needed), and make informed investment decisions.
CARMEN FIELDS MANAGING EDITOR
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