A dear friend of mine who has been excited about buying a home this fall emailed me recently. She asked, “With the latest political unfolding we fear right now – is this is the best time to buy a home?” She is not alone in her concern.
Redfin did a recent poll of 1000 people regarding their confidence in the real estate market during the 2016 election year. Those who responded were by large millennials and many first-time home buyers. Their overall sentiment showed that 27% believe that the election will negatively affect the market. That is up 12% from a similar poll taken in February of 2016.
In the face of uncertainty, how do we react?
I am by no means a real estate economist but I am intrigued by human behavior. If you have ever driven through a tunnel, regardless of weather conditions, the amount of vehicles on the road and visibility, you might notice that drivers slow down considerably. There is uncertainty inside of the tunnel and it takes a bit of time once getting through the tunnel to gain confidence and our bearings again. This is what I anticipate will happen during the 2016 election and Portland’s real estate market. During a time of uncertainty, the market will most likely slow and it could take a bit of time for it to gain momentum again. How we will individually respond to this is the real question.
Which category do you tend to fall under?
The Bulldozers: These people might watch the news or know what is happening but they push forward. They have set a course and they will achieve their goal. They will weather any storm.
The Contemplators: They will pause and consider the options and potential outcomes of buying or selling in the next 6 months making a more calculated decision. More than likely they will move forward if the timing is right for them but will weigh all the options.
The Rabbits: These people will become somewhat paralyzed by their fears like a rabbit freezes when sensing danger and be at a standstill until they feel the air clears.
Many people are a combination of the above and it is dependent upon the scenario.
My answer to my friend was: “There is always a level of uncertainty when investing in real estate. There will always be factors beyond our control whether we are aware of them or not. I am not overly concerned given the continued strength of the Portland real estate market. The truth may be that buying a home in the next 6 months might be a great opportunity because others may hesitate.”
My general advice to any buyer or seller is the best time to buy or sell a home is when you are ready to.
The process of buying or selling real estate is such an individual affair that it is very important to take the whole picture into consideration for each of us. That’s what YogaBug Real Estate specializes in: Supporting our clients in making the best decisions for themselves and facilitating an awesome experience. That’s our magic!