LETTER FROM THE EDITOR
Industry Influence D uring an election year, many factors can influence real estate markets, ranging from political uncertainty, potential policy change, and the perception of markets. During this election year, a few notable factors to keep in mind that can influence real estate and real estate investors include: 1. POLITICAL UNCERTAINTY. Elections often bring uncertainty about future policies, which can lead to volatility in the real estate market. This can cause delays in making purchasing decisions until after the election. 2. POTENTIAL POLICY CHANGES. One area that is always important to pay attention to during an election year is possible changes in property taxes, capital gains taxes, and mortgage interest deductions. Another important topic is housing reform, including affordable housing. 3. INTEREST RATES AND MONETARY POLICY. If you are involved in real estate, there’s no doubt you are paying attention to the Federal Reserve and interest rates. Changes in these rates affect home affordability and investment decisions and are expected to be a focus in the upcoming election. 4. ECONOMIC POLICIES AND OUTLOOK. Stances on economic growth and market stability are key areas to pay attention to. A positive outlook can boost real estate markets, while concerns can cause reservations in spending and slow down market activity. Real estate market trends are closely tied to employment rates. Policies that impact job creation can influence both the residential and the commercial sectors of real estate. 5. HISTORICAL TRENDS. It is important to pay attention to historical data regarding how the real estate market has performed during an election year, but remember that there is money to be made in each cycle of real estate investing. Historical data can help produce a blueprint of what to expect and how to adjust. Election years introduce a range of uncertainties and potential changes that can significantly impact real estate markets. Because of an election year’s impact and influence on the real estate market and real estate investing, Think Realty is excited to announce its upcoming Virtual REI Summit July 31-Aug. 1. At this virtual summit, Think Realty and a host of experts will address the common variables every investor needs to keep top of mind. Participants will gain insight into everything needed to navigate their election-year investment strategy. •
CARMEN FIELDS MANAGING EDITOR
thinkrealty.com | 5
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