Election Year Affect Sales

Today it s important to look at the impact past presidential election years have had on the real estate market.

Election year affect sales. Utilising for example window graphics to promote election year discounts or offers. Granted this is the first federal election held during winter in 20 years and timed smack bang in the middle of half yearly stocktake sales. Btig a research and analysis company looked at new home sales from 1963 through 2019 in their report titled one house two house red house blue house.

The year 2020 has been a strange one indeed. Home prices rose 6 in the year before elections. A few years ago movoto set out to answer exactly how elections affect home prices.

Their research uncovered the following. What we found is that seasonality affects new home sales every fall but the drop is more pronounced in an election year. The results compared the three presidential election years to the other eight years.

After looking at pricing data from the california realtors association they concluded that it had a negative impact. However this drop in sales is usually very temporary. The chart right details the percentage increases for each.

If you re having any work done or refurbishments and resources are tight for promotion there are options. The off years that are considered are the even numbered years that fall between elections. According to the btig research report called one house two house red house blue house there is a decrease of nearly 10 in sales from october to november during a presidential election year.

Using the percentage increase for the 12 th month of each year in the sample i found that house prices in the off years increased on average by 0 22 more than house prices in election years. Over the past 13 election cycles there is a contrast in the median change in sales activity from october to november. With an eight week election period well underway.