Post Election Market

On the Monday following the election, the Sullivan Multi phone started ringing with calls from buyers. By 10:00 AM Monday morning, we had scheduled 5 showings for 5 different properties - a record for Sullivan Multi in any market and simply amazing in this down market. It would not have occurred to us that the election was a factor except that we had noticed a similar pattern two years ago.

Back in 2004, our first year in business, we had a nice two unit listed near Woodford's corner. The property had a steady run of showings up until a few weeks prior to the Presidential election. The showings dried up and we were forced to question the price. Remember, two years ago, we were in the middle of a very hot market. The election never occurred to us as a factor to consider.

After much debate, we recommended to the seller to hold to his price. Sure enough, the week following the election, the showings picked-up and within two weeks the nice two unit was under contract.

The beginning of September was busy for about two weeks but then buyer activity slowed significantly. Post-election Monday came and the phone started ringing off the hook. The buyers are back! While I don’t have scientific proof of cause and effect relative to the election, the pattern seems pretty clear. It is a good reminder to keep global events in mind in the midst of local issues, seasons, weather, and the holiday season.

Everyone is trying to figure out this new real estate market. Is the bubble bursting? Many believe that the spring will tell the truth. For the last couple weeks, the truth is that there are buyers still willing to pay a fair price for decent properties for a long term investment while locking at a good interest rate - a good formula in any market.