The current state of uncertainty for the 2020 election and the general future of the US has naturally found its way into the US housing market. The US real estate market is already feeling the impact of the coronavirus. But what about the impact of the 2020 election on the US housing market?
2020 is a unique year for tracking US real estate trends. This is simply because, at this point in time, so many different factors are making their mark on the housing. And it’s not just the coronavirus, which so far has rocked the Airbnb market. Even the performance of the stock market can affect the real estate market. So how much more could the 2020 election do to the US housing market? As it turns out, historical housing market trends show us that a presidential election can cause some disturbance in the real estate market.
Generally, the fall real estate market sees a drop in US home sales. Following the hot summer season, this is typical in Q3. However, shows that in an election year, the drop is greater. Looking at housing market data for the last 13 election cycles, a study found that, during an election year, the median change in home sales is -15% from October to November. This is, of course, right around election time. The data for the year after an election shows the median change in home sales during the fall is only -8%.
According to some experts, it is expected that the Canadian real estate will perform better due to that uncertainty in US market more people are willing to invest in Canadian houses market as trends show the increase in the sale of bungalows in Canada after COVID-19 more people are willing to buy bungalow now than ever before.