Does the Election Affect the Southern California Market?

How does the election impact the real estate market? I ran some numbers to figure out exactly how the election affects our area.

What’s in store for the real estate market during this election? I ran the numbers and compared September 1st to October 15th in 2015 to the same time period this year to measure what (if any) impact the election has had on the Southern California market. 

In 2015, 2,570 units sold between the 1st of September and the 15th of October. This year, only 2,483 units sold, so there was a slight drop in sales, 3.4% drop in the number of units sold. However, homes are also selling faster this year than they did last year. In 2015, the average days on market was 58, and this year, it’s 57. 

Not only are homes selling faster this year, they are also selling for more money. The average price in September of 2015 was $559,000; this year, the average price is $589,000, which is a 5.4% increase in home value The good news for buyers is that interest rates have dropped from 4% to 3.5%. 

So, regardless of what has been happening in the European, Japanese, or Chinese economies, the U.S. real estate market has continued on. This negative election cycle has not negatively affected our market. Trends in the real estate market still follow the basic economic principle of supply and demand. 

The real estate market relies on supply and demand, not politics.

The reason there was a drop in units sold year over year is that we have lower inventory this year than we did in 2015. Prices have increased by 5.4%, which is a hefty increase, so now is a great time to put your home on the market. Now is also a great time to buy a home and take advantage of those low, 3.5% interest rates. 

If you have any questions about buying or selling a home in our current market, just give me a call or send me an email. I would be happy to help you!