How Presidential Elections Affect the Los Angeles and Beverly Hills Housing Market: What You Need to Know

How Presidential Elections Affect the Los Angeles and Beverly Hills Housing Market: What You Need to Know | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert

The impact of Presidential elections on the housing market is a topic that naturally raises concerns for those considering buying or selling a home, especially in prime areas like Los Angeles and Beverly Hills. The good news is that while elections do have an influence, history shows that the effects are generally minor and short-lived.

In the months leading up to a Presidential election, there tends to be a slight dip in home sales as some buyers and sellers adopt a "wait and see" approach. However, this slowdown is temporary, and home sales often rebound strongly the following year. Data from the Department of Housing and Urban Development (HUD) and the National Association of Realtors (NAR) confirms that after 9 of the last 11 Presidential elections, home sales have increased the following year, a trend consistent since the early 1990s.

When it comes to home prices, the data is equally reassuring. Contrary to some beliefs, home prices generally do not decline during election years. In fact, prices usually continue to rise, following the market trend already in place. This has been true even in luxury markets like Beverly Hills, where demand for high-end properties remains strong regardless of the political climate.

Mortgage rates are another factor to consider, and history shows that during election years, rates often decrease, as they have done in 8 of the last 11 election cycles. This year, experts are already predicting a slight easing of rates, which could enhance your purchasing power if you’re looking to buy in the Los Angeles area.

The takeaway is clear: while Presidential elections may cause some temporary shifts in the housing market, the long-term impact is minimal. Whether you’re buying or selling in Los Angeles or Beverly Hills, the market remains resilient, making it a good time to move forward with your real estate plans. For expert guidance during this election cycle, let's connect and navigate the market together.

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