Well, here we are again, election time. Somehow this time it feels very different. Unprecedented times. Global pandemic. New normal. Uncertainty.
In this post we will address some common concerns, and provide historical insights and share some optimism for you as a Buyer or a Seller. Your home is one of the greatest investments you will ever make so understanding the impact of an election is important in making real estate decisions. As we have mentioned in other Garrett Company posts, ample data supports that it is a great time to sell your house or buy a new or first one in Williamson County, TN.
The impact of Covid-19 is still being determined and is ever changing. This is truly uncharted territory for everyone. So let's look at what we know that impacts the Real Estate market here at home and the world.
With closed sales in Williamson County up from last year by 13.4% when compared to the same time in 2019. That's the good news. The not so good news is that consumer confidence drives the real estate market to a large extent and uncertainty changes that dynamic. The other underlying drivers are jobs, economy and interest rates. Supporting the good news is that unemployment due to the shutdowns is dropping faster than predicted post original projections. Interest rates remain at a historical low. The economy is also rebounding with people slowly but surely getting back to face to face work, albeit with Covid-19 restrictions in place.
Considering that something as broad as “uncertainty” is a factor, there is no way to fully mitigate it until we know the outcome and start to understand if we will experience a continuation of previous economic drivers or have to see what a new administration will do regarding taxes and economic policies and how or if that will change things. The power of uncertainty is a normal emotional, put simply: people fear change and buying and selling real estate is emotional.
Adding to the good news, Meyers Research Housing Consulting says that historically home sale drop during a Presidential election year from October to November then rebounds in December once we know who will live at the most famous street address: 1600 Pennsylvania Avenue.
When you look at socioeconomic status, the upper earners tend to hold back on decision making until there is more certainty particularly around taxes. Middle class earners tend to make the decisions when they need to with less worries about tax implications. Key considerations at the moment are:
- Historically low interest rates available, right now
- Low inventory if you are a Seller gets you a higher percentage of listing price, right now
- Existing equity from your current home couples with record low financing significantly strengthens your buying power, right now
No one has a crystal ball, so knowing what your options are today is better than guessing at what they might be tomorrow.
The Garrett Company has been in the Real Estate business since 1947. We have seen lots of change in Williamson County and the world over our decades of client service. Let us add some certainty to your home buying or selling considerations with professional, attentive and knowledgeable real estate services. We are here to serve you. You can reach me anytime at 615-664-7110 (cell) or firstname.lastname@example.org.
At The Garrett Company, we focus on delivering the highest level of real estate brokerage services to our clients. We emphasize quality over quantity - we're small on purpose.