2 minute read.
There are very few things that can stem more change than an election. The result of an election elicits a change in power, a change in attitudes, and a change in opinions. Sadly, less and less homeowners are taking the time to understand how elections and the changes it entails can influence the real estate market.
With the Canadian federal election less than a year away, it is beneficial for buyers and sellers to know how it will affect the real estate market. Understanding the relationship between an election and the real estate market can help buyers and sellers make an informed and, potentially, cost-saving decision.
How the Real Estate Market is Affected Before an Election
Shortly before an election takes place, many buyers and sellers will start to veer away from the real estate market until a winner has been announced. This is because new governments will come with new expectations and initiatives. It is impossible for homebuyers and sellers to know if these initiatives will help or hinder them in the long run. Although there is a chance that it could benefit the buyer or seller, there is an equal chance that they could lose thousands of dollars because of their investment.
How the Real Estate Market is Affected After an Election
Many experts believe that house prices will generally rise after an election. And while the results of an election do not directly influence the price of a home, they do appear to influence the decisions of home buyers. If a homebuyer sides with the winner of the election, he or she is more likely to purchase a home in the area that the winner represents. The reason is that homebuyers tend to believe that electoral winners will take better care of the town, city, or state that they are from. Home sellers may take advantage of this blind trust by raising the prices of their homes.
While an election can play a critical role in the real estate market, buyers and sellers should learn about the real estate market regardless of the time of year. The real estate market changes regularly and it is important that buyers and sellers understand the market so they can make informed decisions. It is also important to work closely with a real estate agent who can answer any questions and help guide you through the current and upcoming market.