With the upcoming Presidential election, the United States’ economy, commerce, and real estate have become hot topics. Looking at past history, the Presidential election and the voters’ attitudes towards it often have an impact on consumer spending habits.
With such a diverse range of options in the 2016 Presidential Election, the future direction of the country is up for grabs. As we enter into the summer convention season, there remains a veil of uncertainty hanging over the US economy. Real estate markets around the country are feeling the pinch due to low consumer confidence as a result of this uncertainty. In destination second home markets, buyers are patiently sitting on the sidelines waiting to jump back in. This could signal an opportunity for savvy investors who recognize this as a momentary pause, creating new opportunities for negotiation with nervous sellers.
So what are experts saying about the 2016 election?
MarketWatch says, “Economic growth has remained subpar in 2015 but economists generally aren’t looking for a recession to arrive next year.”
With Cotton & Company’s diverse client roster, we continue to see steady consumer interest. Website traffic and online registrations have remained strong through Q1 2016. The timeline to purchase is taking longer to convert, with buyers often making multiple site visits. Building a pipeline of leads during this time period and maintaining a strong follow-up program should result in a return to normal activity once the election season settles down. Dramatic population and geographic relocation trends indicate a bright future for second home destinations. Ageing U.S. homeowners are still seeking warmer climates and amenity-rich communities with experience driven lifestyles.
A 2016 Realty Today roadmap suggests the following:
- Resale property owners jump in and out of the market due to life changing events like marital changes, family expansion, education, or job change. So whether the economy is high or low, the need to buy or sell in the primary market is less impacted by the election cycle.
- Buyers face similar personal considerations with varying motivation and timing. There can be a lack of urgency to pursue goals like purchasing an investment property for rental income, making renovations to a current home, or moving up within an existing market during this time period.
If you’re navigating your real estate sales operation through this election season, Cotton & Company can help you cultivate your lead base and prepare to capitalize on the surge in activity post-election. Cotton & Company is widely recognized as an industry leader in new residential real estate sales and marketing. We have empowered real estate sales success worldwide having managed more than 1,700 properties over the past four decades.
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