6 Unexpected Pros of Buying Before the Election + Holiday Craziness is Over
I get it. If buying or selling a house is on your radar at all, you're likely telling yourself to just wait until the Spring at this point, am I right?
I mean, who would be crazy enough to try to navigate the economics of this election, having out of state guests in town for the holidays, AND moving?
Folks who want a good deal, that's who.
And if we're honest, who DOESN'T want a good deal?
Here is our summary of points you should consider when thinking about your upcoming Real Estate timeline:
INCREASED HOME PRICES.
In 7 out of the last 8 election years (yes, the last 35 years) home prices INCREASED after the election.
RATE MATH.
Right now, economists are projecting that rates will be around 5.5% in 2025. Woo hoo! But if you were to buy a $600,000 house now with an interest rate of 6.75%, that would be roughly a $500/mo difference in payment. Over 12 months, that's $6000. The likelihood that you'll make more than $6000 in gained equity and/or saved by not paying rent over those 12 months is high. Also, you might want to keep in mind that the average interest rate over the last 40 years is 6.77%, so either way, you're still coming out on top. Or at the very least, average.
HONESTY ABOUT THE ELECTION OUTCOME.
You might be concerned about who will win the election. Which is valid for many reasons. But I might suggest that you do a deep dive and ask yourselves, “will the outcome of the election REALLY affect my home buying journey? What do I actually anticipate happening?” If you're in the camp that's considering moving to Canada depending on who wins, you might have a legitimate argument. If something that drastic is not on your radar, you might want to rethink if holding off is all that important.
DEALS THAT STICK.
People that sell their house between October-February are generally people who HAVE to sell. They're probably either relocating for a job, going through a divorce, have experienced a death in the family, or are expecting a new little one. Either way, they're more motivated to make a deal work for you than in the Springtime when homebuyers are popping up like daisies and it's easy for them to go back to the market and find someone new.
SWATHS OF BUYERS.
Speaking of Buyers that pop up like daisies. Springtime is undoubtedly the most popular time to buy and sell a house in the Portland area. Your grass is green, your flowers are glowing and everybody is coming out of hibernation. BUT this also means that your competition of other Buyers are on the frontlines to fight you for the super cute, super walkable house that everyone wants. Although you may have more options of houses at this time, you also might be forced to overpay for that Tudor you fell in love with.
DON'T PUT OFF YOUR UPGRADE.
If your plan for moving is to upgrade your house (lets say, from a small 2 bedroom in N Portland to a 4 bedroom in Southwest) the sooner the better. The reality is, the higher price of house, the higher ratio it will most likely appreciate. For example, I have a client that sold his $450,000 house recently and made $200,000 on his investment over the last 7 years. Amazing, right? Well, I have another client that sold his $1,200,000 house and made $500,000 after owning his house for only 5 years. You see what I mean? The longer you wait to make that move, the more potential higher ratio equity you give up.