Presidential Races Do Affect Real Estate Prices.

In my many years of brokering commercial real estate it has always surprised me that many property owners make extensive plans regarding their commercial real estate based upon assumptions regarding the next President of the United States.  We all know that many changes in our country do occur when we have a change of President.  That is especially true when the political party also changes.

What we don’t usually know in advance is exactly how all of these changes will impact real estate prices.  Not to mention just who will win the election. 

No matter who wins there are those that will feel we are all going to hell in hand basket.  These people start to get depressed as soon as the candidates from each party are chosen.  Conversely there are those owners who know beyound a shadow of a doubt that prices will rebound and start shooting upwards.  These people start to get giddy when the actual Presidential candidates are chosen 

 Not only do these people all feel they have had a flash into the future about the pricing of their property but they also seem to have received a Divine message as to who will win the race. Therefore some owners get more morose and some just can’t stop from grinning.

As the Broker in all of this, I get calls from some people who want to get out of their properties before the election and some who want to start buying before the election.  I have not really kept an actual scorecard on which side is more clarevoyant but I am pretty sure the answer is neither.

The reality seems to be that nothing much happens one way or the other.  That’s true at least initially when a new President takes office.  If there is a movement up or down it will have occured due to movement either up or down in the economy itself  because of further anticipation or some time farther into the Presidents term.

I have never counseled anyone to buy or sell real estate because of an election.  Those decisions must be based upon the same reasons one buys or sells at anytime that they happen to make that decision.  If you want to take some profits or you want to retire, go ahead and sell.  If you have some money you want to place in a solid investment, go ahead and buy.  In any case you are probably making the right decision.  At least for you.  If you have another answer, please let me know.

Tags: commercial real estate, decision to buy real estate, decision to sell real estate, real estate prices