An election changes the economy even before the election occurs, and its influence continues in the months after a new government takes office. This year’s election is no exception, and owners, buyers, and tenants are all wondering how the election will change the Seattle housing market. If there are changes in the local housing marketing, how might they influence your Seattle rentals?
Historic Responses to the Election
Around an election, there is uncertainty as to what the country’s policies will be and how they will influence everything from foreign policy to mortgage rates. According to Forbes, “the next president’s economic and employment policies will be a key influence on the health of real estate for the next four years.” Due to this uncertainty, markets have historically slowed the year of and the year following an election.
The Regional Housing Market is Still Strong
While national housing markets may slow due to the election, to make any statement about rental market conditions in Seattle, you need to examine the factors that influence the local housing market. In addition to national trends, each region has its own trends. According to Windermere Real Estate, in Seattle’s housing market, “demand is still outstripping supply by a substantial level,” and housing prices remain high, although there has been a slight drop in list prices.
The Housing Market and the Rental Market
How does all of this housing market data relate to your local rental market? Higher housing prices can increase the average rent that people pay in your area, so if you already own a home that’s rented, this could be a good thing. However, if you’re trying to add to your portfolio, you may need to pay more in a hot real estate market, so looking for a dip in home prices right before and after the election would be a savvy move.
Higher home costs can price potential buyers out of the housing market, turning them into potential tenants instead. However, if rents and housing prices get too high, tenants may move elsewhere to look for a more affordable lifestyle, so some dampening of a sky-high market can be a positive. It’s a dance between maximizing your income from your rental properties and making sure that tenants can still afford to live in your city.
You can’t control the housing market, but you can control how you manage your rental properties. When you’re looking for excellence in property management, contact Lori Gill and Associates. We know Seattle rentals, and we will work with your tenants and your property to ensure that you attract and retain tenants, no matter what’s happening in the rental market. Contact us today to see how our property management services can help you manage your rental properties.
