Will A New Administration Stimulate Home Sales?

Many of my clients are optimistic that a new presidential administration and a new Congress will usher in a new wave of potential home buyers. “Let’s see what happens after the election.” was common to hear. I believe the thinking is that important factors like price and condition won’t matter as much. After all, people have to live somewhere.

A Closer Look

Let’s take a little bit of a closer look.

Both the President-Elect and the Vice President-Elect have been in Washington, as Senators, for awhile (plus, they’ll have a place to live!). A lot of the people whose names are floating around have been here for awhile, too. More importantly, anyone that does move here from elsewhere will most likely rent a place for the short term (say, the first year) while they get acclimated to their new job and the MD Suburbs of DC.

Most Congressmen or Senators have homes and constituencies elsewhere and maintain their primary residences elsewhere and go back and visit their home districts pretty regularly. Some of them and their staff will buy a house here but for folks that come up for re-election every two years (the House of Representatives) or every six years (the Senate) it sometimes makes more sense to rent a house than to buy one especially if they think home values may continue to decline.

What About The Lobbyists?

There will be an influx of lobbyists, contractors, and various support people who will be moving into the area. There will also be a lot of them that are already here and will just switch gears to accommodate the Obama Administration.

Again, depending on what industry or trade association they’re representing, these lobbyists and their staff and support people may or may not run out an buy a house. A lot of them have intense travel schedules and families with children in school systems “back home” - wherever that might be.

What Really Matters

There is always optimism about a new Administration. For different people, there is optimism about the new direction the Obama Administration will lead us. Home Sellers want to believe the change will also stimulate home sales.

I want to encourage all the hope and optimism. I am also pragmatic.

I’ve been in the real estate profession through a few changes in Administrations. I’ve been waiting for the BRAC (Base Realignment Commission) influx of military personnel to come to the area. I’m still waiting.

If you have your house on the market, here is what really matters: