DataMarkets & Economy

Does the election scare off California homebuyers?

Data shows the presidential vote often increases demand
  • The California housing market has rarely seen negative sales growth during an election year.
  • California home sales in the final months of an election year picked up by an average 5.3 percent, compared to a 1.8 percent drop posted during the final months of non-election years.
  • 70 percent of California survey respondents who plan to buy a home said they would like presidential candidates to discuss affordable housing policies during the campaign trail.

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 If you’ve been paying attention, you know this year’s presidential election is anything but regular. But is the highly-publicized and lesser-of-two-evils narrative creating hesitation among California homebuyers? The run isn’t over, so it’s too early to say for 2016. Historically, however, elections have little impact on the Golden State housing market, a California Association of Realtors (CAR) election analysis shows. In fact, the election typically correlates with an uptick in demand and pricing. “Market fundamentals such as housing inventory, affordability, interest rates, job growth and consumer confidence are the real factors that influence the housing market,” CAR President Pat “Ziggy” Zicarelli said. Each election year since 1990 has been a bit different, with some months showing growth or mild decline in home sales, as compared overall -- but the Golden State market has rarely seen negative growth during an election year. In California, ...