Do Politics Really Have an Impact the DC Real Estate Market?

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As we move into the New Year with promises of an even stronger housing outlook ahead, one can only wonder whether politics has played a role in the ups and downs of our marketplace. The truth is that there really is no formal study out there that would allow us to properly evaluate this fact.

Through speculation however, we believe that with this year’s Presidential election at hand there were many homeowners and potential buyers that had been simply “waiting the election out” to see its outcome. Until the election passed, there were a significant number of consumers that were sitting there, building a pent up demand that was almost fiercely unleashed immediately after the election. In fact, in the past years November and December are the slowest months of the year but this year we actually saw one of the strongest pick ups we have seen in a while.

Does All This Talk of the “Fiscal Cliff” Push Buyers Away?

The truth is that while there are very strong changes at hand based on how the government chooses to handle the circumstances, in actuality the true impact on our housing market comes from employment numbers. We strongly believe that our country’s economy is pumped and stays alive with strong employment rates across the board. Jobs allow people to afford housing and of course the more activity in the marketplace, the more the machine stays well oiled.
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Despite our local marketplace being one of the stronger areas in the region, we are still seeing a direct impact on our real estate market as a result of economic uncertainty rather than politics. Decisions made in the political arena, however, will affect us. Our interest rates are currently pegged by the Fed to remain low until either one of two things happen; inflation reaches over 2.5% or the national unemployment rate falls under 6.5%. Analysts are predicting this could be a few years coming.

If you are interested in a more detailed report about the happenings of our local real estate marketplace, or would like to discuss your particular neighborhood – we invite you to contact us today. Serving the Greater DC, MD and VA areas – we look forward to hearing from you!