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Why Home Sales Bounce Back After Presidential Elections: Insights for Los Angeles and Beverly Hills Real Estate

Why Home Sales Bounce Back After Presidential Elections: Insights for Los Angeles and Beverly Hills Real Estate

By Christophe Choo Posted Oct 29, 2024 Latest Updates, Market Activity, Real Estate Advice for Buyers & Sellers, Real Estate Articles, What I'm Reading

Why Home Sales Bounce Back After Presidential Elections: Insights for Los Angeles and Beverly Hills Real Estate | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert

With the 2024 Presidential election just around the corner, many are wondering about the potential effects on the Los Angeles and Beverly Hills real estate markets. Historically, election years bring unique patterns to the housing market, with a temporary dip in sales followed by a strong rebound. Here's a closer look at why this happens and what it could mean for buyers and sellers in LA's luxury neighborhoods.

Election Years Bring a Temporary Slowdown

Every fall, real estate markets across the country experience a seasonal slowdown, with fewer homes on the market and a drop in buyer activity. However, in an election year, this dip tends to be a bit more pronounced, especially in high-stakes markets like Beverly Hills and Los Angeles, where buyers and sellers are particularly sensitive to economic shifts.

Data from BTIG illustrates that home sales tend to dip slightly more than usual in the month leading up to Election Day. The main reason? Uncertainty. Buyers and sellers often pause to see how the political landscape might shift, impacting financial markets, tax policies, and interest ratesā€”all critical factors in luxury real estate decisions. According to a recent survey by Redfin, nearly 23% of potential first-time homebuyers plan to delay their purchases until after the election. This cautious approach extends to high-net-worth individuals in Los Angeles who might prefer to wait for a clearer economic outlook before making significant investments.

Why Sales Bounce Back After Elections

The good news for LAā€™s real estate market is that this pause is usually temporary. Historically, home sales tend to bounce back robustly after the election. In fact, data reveals that in 82% of cases, home sales increase the year following an election. This rebound occurs because the uncertainty that held buyers and sellers back dissipates, allowing them to move forward with their plans with a sense of stability and predictability.

For luxury markets like Beverly Hills, this post-election surge can be even more impactful. Buyers and sellers are more confident making decisions on multi-million-dollar properties once they have a clearer understanding of the economic and political landscape. This could lead to a spike in transactions, as both local and international buyers who delayed their decisions come back into the market, particularly interested in iconic neighborhoods like the Beverly Hills Flats, Trousdale Estates, and the exclusive enclaves of Bel-Air.

What to Expect in 2025 for Los Angeles and Beverly Hills Real Estate

If history repeats itself, Los Angeles and Beverly Hills can expect a notable uptick in real estate activity post-election. Projections for 2025 show a potential increase in national home sales, with current forecasts estimating around 5.2 million homes will be soldā€”up from 4.6 million this year. For high-end markets in Los Angeles, this could mean increased competition among buyers and a potential uptick in property values.

Given LAā€™s status as a premier global real estate market, the post-election rebound may attract an influx of international investors and luxury buyers seeking trophy properties in one of the worldā€™s most desirable cities. Coupled with the region's enduring appeal, from scenic ocean views to celebrity cachet, areas like Pacific Palisades, Malibu, and Beverly Hills are poised to benefit from this renewed activity.

How Sellers Can Benefit from This Market Cycle

If you're considering selling your property in Los Angeles or Beverly Hills, now is a strategic time to start preparing. With a strong likelihood of increased demand after the election, positioning your home to stand out in a competitive market will be key. Working with a real estate agent who understands the unique dynamics of LA's luxury market can help you price your home strategically, optimize its presentation, and tap into both local and global networks of high-net-worth buyers.

Bottom Line

While election years may bring a short-term slowdown, this pause is usually followed by a period of increased sales activity. For the Los Angeles and Beverly Hills luxury real estate markets, this post-election resurgence could mean a strong start to 2025, with more buyers returning and competition heating up for exclusive properties. If youā€™re weighing your options and waiting for a clearer picture, rest assured that the market is expected to gain momentum in the months following the election. Connect with an expert who can guide you through this cycle and ensure your property is positioned for success.

Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value

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