November’s US election looks set to be one of the most thrilling in living memory. The presidential election is always big news in America, but this year’s US election is captivating audiences all over the globe.
While candidates debate everything from immigration controls to foreign policy, there’s only one thing that real estate agents are listening to, and that’s the talk about the USA housing market.
Specific policy plans don’t tend to appear until the new president is sworn in, but that doesn’t stop the US election having an impact on the USA housing market from the day the debates begin. Here, we have a look at how the presidential election may affect house prices today and over the months to come.
Supply and demand
The USA housing market is affected by many different factors, but undoubtedly the most important is supply and demand. With neither of the presidential candidates making any clear statements about their plans to build homes in the US, the supply factor is assumed to be fairly stable. That just leaves a question mark over the demand.
There are two things which determine demand in the housing market. The first is a country’s population, the second is consumer confidence. With polls up and down and ongoing debates in the run up to the US election, buyers’ confidence can be vulnerable and volatile.
While immigration has been at the forefront of debates in the run up to the presidential election, the size of America’s population is unlikely to see any dramatic change in the near future. Consumer confidence, though, can change in a heartbeat.
Fortunately for the USA housing market, both candidates are in a position which inspires confidence among buyers. Commentators view Hillary Clinton as a safe choice, both for the real estate world and the general economy. Though Donald Trump is viewed by some as a high-risk candidate, some others state that any concerns over his personality and international relations are offset by his preference for the real estate industry. Whichever way this election goes, consumer confidence looks set to remain high.
A final word
To say there’s no concern among the American public about the upcoming presidential election would be a lie. But as we’ve seen, that doesn’t necessarily spell trouble for the USA housing market. Neither presidential candidate is thought to pose a threat to the world of property.
The bulk of forecasts point to stability in the US housing market, with the American economy staying comfortably on its steady road to recovery. This can only mean good things for US house prices following the presidential election, as investment continues and markets remain buoyant.