Election season is upon us! As everyone prepares for an exciting election this year, I want to take the time to put together a few items that each of you should pay particular attention to. But, before I dive into how the market may react, I want to quickly make sure that everyone knows that we are here to help. Just this week I came across another situation where hundreds of thousands of dollars were about to go down the drain until we stepped in and provided some strategic advice. Not all agents are created equal! You MUST treat your real estate decisions as financial ones and we can help you navigate the process. Feel free to share our contact information with any of your friends/family/co-workers/etc. We treat all of our conversations confidentially. We can also reach out to them if that is easier. My initial goal when we started out was to put together a brokerage of answers and solutions - we have done a phenomenal job in achieving this and created a market niche (educated and creative Realtors that UNDERSTAND everything about real estate).
I digress, so on to what to look out for with the election!
1) Interest Rates - The general consensus is that there is very little room, if any, for interest rates in the United States to go down in the upcoming years. However, uncertainty in markets can cause movements in either direction. If the market believes the winner of the election can create growth, and the Federal Reserve sticks to its plan, then we should see interest rates rise during the term of the presidency. Pay particular attention to rates in the short-term after the election. Given the candidates, there may be some wild market swings depending on who wins.
2) Rent Control - On the local level, we have a few measures on the ballot here in San Mateo and Burlingame. In particular, Measure R in Burlingame andMeasure Q in San Mateo. For these, I highly recommend if you live in one of these cities to take a quick read and make an educated decision about how to vote (as either a home owner or renter). Other cities in the Bay Area that have rent control measures in place already include San Francisco, San Jose, Oakland, and Berkeley just to name a few. As you read through the measures and look at the different cities, the type of property and the year it was built may influence the limits in place.
Results - Depending on how everything pans out, if rates go up, there may be issues, at least in the short-term, with prices continuing to rise without wage growth. Take a look here at a prior newsletter where we dove into the topic. For Rent Control, EVERYONE should understand the economics of how this works. Even if you are not in San Mateo or Burlingame, Rent Control is often proposed as a means to fight housing affordability. Without putting a dissertation together here, there tends to be other effective methods to achieving housing affordability.
Both the interest rate and rent control measures WILL have an impact on home prices. To get a better understanding of how these might influence your particular situation, give us a call!
1) We are growing and are looking for new REALTORS to join the team. If you know anyone currently practicing or looking to get into the field, send them our way.
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If you ever have any questions, or anyone you know is interested in buying or selling a property, please do not hesitate to reach out or share our contact information. At MinnGo, we realize that real estate is not something our clients think about everyday. Lucky for you, that is what we live and breathe.
Until next time.