![]() Tomorrow, Americans will decide our President for the next four years. That decision will have a major impact on many aspects of life in this country, but the residential real estate market will not be one of them. Analysts will try to measure the impact feasible changes in regulations might have on housing, the effect of a possible first-time buyer program, and any number of other situations based on who wins. The housing market, however, will remain strong for four reasons: 1. Demand Is Strong among MillennialsThe nation’s largest generation began entering the housing market last year as they reached the age to marry and have children – two key drivers of homeownership. As the Wall Street Journal recently reported:
2. Mortgage Rates Are Historically LowAll-time low interest rates are also driving demand across all generations. Strong demand created by this rate drop has countered other economic disruptions (e.g., pandemic, recession, record unemployment). In addition, Freddie Mac just forecasted mortgage rates to remain low through next year:
3. Prices Continue to AppreciateThe continued lack of supply of existing homes for sale coupled with the surge in buyer demand has experts forecasting strong price appreciation over the next twelve months. 4. History Says SoThough it’s true that the market slows slightly in November when it’s a Presidential election year, the pace returns quickly. Here’s an explanation as to why from the Homebuilding Industry Report by BTIG:
Ali Wolf, Chief Economist for Meyers Research, also notes:
Bottom LineThere’s no doubt this is one of the most contentious presidential elections in our nation’s history. The outcome will have a major impact on many sectors of the economy. However, as Matthew Speakman, an economist at Zillow, explained last week:
The post 4 Reasons Why the Election Won’t Dampen the Housing Market appeared first on Keeping Current Matters. from https://www.keepingcurrentmatters.com/2020/11/02/4-reasons-why-the-election-wont-dampen-the-housing-market/
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