Real Estate and the Election Year – What does it mean to you?

“In general, interest rates trend downward in a presidential election year.  If that remains true, it may be a reason to buy rather than a reason to wait on the sidelines.  In trying to gage the impact of any election, the importance of the general economy going into the election year probably can be said to have a greater impact on the twelve- to eighteen-month housing outlook than the election itself.  It’s pretty clear early in the election year of 2008 that the housing outlook is fairly bleak and it probably will not be influenced by a new President irrespective of the party to which he or she belongs.    “The only reason to refrain from buying real estate during a Presidential election year would be if there is a perception that macro economic changes will result in consequence of one or the other candidates being elected.  While it is historically true to think that Democrats will have a looser, more expansive view of government spending and Republicans are more tight fisted with the country’s purse strings, the last two Republican eras have, in fact, increased government spending very substantially while the most recent Democrat administration was the first of either party in a generation to produce a budget surplus.  You need to make a judgment about each election since no set rule seems to exist.    “Despite public perception that a President can “do something” about broad-based economic problems, the reality is that the marketplace tends to govern itself in accordance with the law of supply and demand.  In a down market, as at present, a President is most often reduced to the function of “jawboning” to try to persuade segments of the population or the market not fall into despair.    “In general, if you are a prospective buyer, the process and the outcome of a presidential election should be fairly far down the list of issues that are of concern.  Buy when you are able and want to, buy what you can afford, don’t look to get rich quickly (your home should not be an ATM) and be set to hold your property for the long term so as to optimize your prospects for appreciation.     “And however you view the relationship between real estate and presidential election years, be sure to vote when the time comes!”