Myth Busters: Presidential Elections Affect Home Prices
Myth Buster: Presidential Elections Affect Home Prices Most of us don’t like uncertainty and hold off making big life decisions when faced with it. Recently, we’ve heard many potential homebuyers state that they’re waiting until after the election to make a home purchase. So we felt it prudent to share this myth buster to help homebuyers make decisions based on real data and facts versus politician’s exaggerated advertisements. According to historical data by Case-Shiller, since 1987 the average home price has increased by 4.84% while conversely on non-election years the median home price average has risen 4.44%, on average. What were the top 5 years for home appreciation? 2021 (18.87%) 2004 (13.64%) 2005 (13.51%) 2013 (10.71%) 2020 (10.43%) *Election years are in bold. What years experienced the most significant decline in home prices? No surprises, the worst year for home prices was 2008 during the financial crash. 2008 (-12%) 2007 (-5.4%) 2010 (-4.11%) 2011 (-3.88%) Since these data records began in 1987, outside of the 2008 to 2011 period, only one other period experienced a national price decline. That was in 1990-1991, when the decline was less than a quarter of a percent – which is relatively nominal and more like a flat market. Political ads are designed to grab your attention with shock advertising because they want to create uncertainty so you will go out and vote. Of course voting is very important, but the election results really have no impact on home prices. According to Ken H. Johnson, an economist at Florida Atlantic University: “Many speculate on how presidential elections impact home prices. To date, there is no statistical evidence that one winning side versus the other has any impact on home prices.” So if elections don’t affect home prices, then what does? There are three key factors at play here: 1. Supply: The number of homes on the market meeting, below, or exceeding the demand for home purchase. Just like seeing toilet paper prices triple during Covid – because apparently we lost the ability to make toilet paper in the US – people were buying in bulk quantities which meant suppliers could not keep up with demand, so the price skyrocketed. Once shoppers quit bulk buying because they had stocked their homes with enough toilet paper to last a year, prices then came back down as demand decreased. We saw the same occurrence in 2021; a huge increase in buyer demand but low home inventory on the market. After a spike in 2021, it then tapered off to a more average home appreciation price point once supply and demand settled. The reverse is also true – when there’s more supply than demand, home prices decline until the supply equalizes with the demand. 2. Interest Rates: Most buyers have a mortgage and a set amount they can afford based upon their current income. Therefore, when interest rates rise it causes buyers to purchase homes at lower price points or hold off purchasing altogether, which impacts demand. As mortgage rates started to fall into the low 6% range recently and we saw a couple of dips below 6% buyer demand picked up. 3. Regional Occurrences: Outside of the national market, regional economics also play a significant role on the local housing market. In the 1980s, Texas was hit hard when oil prices plummeted, as at that time oil was a huge part of the Texas economy. The same applies to Nevada, the year that we experienced a large drop in tourism rates, outside of 2021, we also experienced local price adjustments on home prices. Nevada has been working hard to balance its employment base beyond the hospitality industry. Although this is still our largest employment sector, other areas including health, tech and manufacturing have been steadily growing in market share. When is the right time to purchase a home? Personal circumstances are the leading factors here. Those whose income is sufficient, so they can start investing in their personal net worth versus their landlord’s. Those who feel they will be living in the Valley for more than 3 years. If only I had a dollar for everyone I’ve met who told me they only plan to be here for 1-2 years, yet 5 to 10 years later they’re still here. Those who understand the value of homeownership and are ready to make the move with confidence. If you don’t find yourself ready yet but would like to understand more, we have a homebuying journey where we can walk you through the benefits and limitations, advise on next steps and then help find the perfect home when you're ready. It’s never too early to get started – the better prepared you are, the better decisions you’ll make. Data from https://www.bankrate.com/real-estate/election-year-housing-market/
Finding the Right Real Estate Agent
How to Choose a Great Local Real Estate Agent When you’re ready to buy or sell a home, choosing the right real estate agent is crucial. The Graham Team Real Estate Advisors offer expertise and personalized service to ensure a smooth transaction. Here’s how to find the best agent for your needs. Check Their Reputation Start by researching agents in your area. When considering a real estate agent, you’ll notice a solid online presence and glowing reviews that speak to their credibility and expertise. As Freddie Mac explains, “you may want to look for a real estate agent who specializes in the type of home you’re searching for. For example, if you are looking for an energy-efficient home, look for an agent who has experience with finding and negotiating offers for those homes. If you are looking for new construction, you’ll want to find an agent who has experience with new construction and isn’t affiliated with the builder.” Local Market Expertise An expert agent brings detailed knowledge of both national trends and local market nuances. This dual expertise helps clarify any misconceptions and provides accurate comparisons between local and national market data. Familiarity with your desired neighborhoods and community amenities is a given, ensuring that you receive comprehensive insights tailored to your specific real estate goals. As stated in a recent article from Business Insider, “Spend some time talking with prospective agents about the local real estate market and how it could impact your purchase or sale. You want to get an understanding of how knowledgeable they are about local market conditions. Whether they’re helping you sell or buy, their strategy for you should account for those conditions.” Communication Style and Availability Effective communication is essential. Choose an agent who is attentive to your needs, quick to respond, and transparent throughout your real estate journey. It’s important that your agent manages a balanced client load to remain readily available and responsive to your needs. Bankrate recommends, “Interviews also give you a chance to find out the agent’s preferred method of communication and their availability. For example, if you’re most comfortable texting and expect to visit homes after work hours during the week, you’ll want an agent who’s happy to do the same.” Trust Your Gut Ultimately, trusting your instincts plays a significant role in selecting an agent. You should feel comfortable and confident with your real estate agent, as this relationship is pivotal in guiding you through one of the most significant financial decisions of your life. As Business Insider puts it, “As long as you’ve properly vetted the agents you’re considering and ensured they have the necessary expertise, it’s ok to go with your gut. Maybe you have a better rapport with one of the agents you’re considering, or you just feel like they’re easier to approach. You’re going to be working closely with this person, so it’s important to choose an agent you’re comfortable with.” Bottom Line The Graham Team Real Estate Advisors are here to provide the support and expertise needed for a successful real estate experience. By following these guidelines, you can ensure that you choose an agent who will meet your needs with professionalism and care. Let’s connect and discuss how a Graham Team agent can assist you in your real estate endeavors. We’re excited to see if we could be the right fit for each other. Graham Team Real Estate • (702) 930-9551 • Team@grahamteamnv.com 3007 W Horizon Ridge Pkwy, Ste. 210, Henderson, NV 89052
The Ideal Time to Buy a Home in 2024
The Best Week in 2024 to Buy a Home Get ready! September 29 – October 5 is projected to be the best time to buy a home in 2024 (according to Realtor.com). This period offers a prime opportunity for homebuyers, with factors like lower competition, reduced listing prices, and increased inventory making it an ideal time to find your next home.In addition, mortgage rates in the Las Vegas Valley have dropped below 6% over the last two weeks (the lowest we've seen all year), making this ‘sweet spot’ even more enticing for buyers. If you’ve been considering purchasing a home, now is the time to act and take advantage of these favorable market conditions. The first step is to get you connected with a trusted local lender to start the pre-approval process. We partner with a few here in the Valley who are ready to help get you started. Contact us to find out more: Graham Team Real Estate (702) 930-9551 Team@grahamteamnv.com 3007 W Horizon Ridge Pkwy, Ste. 210, Henderson, NV 89052
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