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A majority of voters are concerned about the upcoming presidential election’s impact on the economy.
But despite their anxiety, election years do not negatively impact the real estate market or small businesses, according to experts. Instead, the time of year, the unemployment rate and interest rates influence sales.
Presidential election years actually have a positive impact on the housing market in the Washington, D.C. metro area, according to Nadia Evangelou, a senior economist at the National Association of Realtors®. She tracked existing home sales in the area between November and March from 1988 to 2015. Home sales rose 10% the year before an election, 12% the year of the election, and 10% the year after.
"The cyclical nature of political transitions and the influx of new staff to Washington, D.C., typically leads to a surge in home buying, selling and rental activity in the local market," Evangelou said.
Those political transitions are reflected in nationwide housing data, Evangelou said. Nationwide, home sales increased an average of 1.5% the year before an election, 3.4% the year of the election, and 7.2% the year after elections, according to Evangelou’s study.
When it comes to small businesses, experts don’t think presidential election years negatively impact sales.