How Has the Election Affected the Richmond Market?

Mission Realty Real Estate Podcast with Clayton Gits

Now that the election has been over for a couple of months, we can finally start to examine how it will impact the real estate market. Today, we'll discuss how the new administration affects buyers and sellers.

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How has the election affected the Richmond real estate market? There's actually good news and bad news.

The bad news is that mortgage rates have shot up since the election from a low of 3.47% in November to a high now of 4%. As rates go up, it puts more pressure on home buyers. We'll have to wait and see if it puts any pressure on home prices because we haven't seen that yet. In fact, we're seeing an increase in demand, probably due to many buyers jumping off the fence and into the market as they realize that these historically low interest rates won't be around forever. For home sellers, this could be great news in terms of increasing demand.

Economists say this volatility is likely to continue as long as we transition into a new administration. Apparently, it's pretty normal, historically speaking.

So what's the good news? Tax breaks could open up sales for the luxury market once again. That market has really stalled, especially here in Richmond. The demand for homes priced over $400,000 really decreased here. The tax breaks could also have a trickle-down effect on the rest of the market, too.

We could also potentially see looser lending regulations, which could allow more buyers to qualify for a home and increase demand. Looser regulations could also stimulate more construction. If it's easier for builders to have access to funding, it could stimulate the building of new homes.

“

The good thing we can all get excited
about today is that the election
is finally over.

”

The good thing we can all get excited about today is that the election is finally over. I don't know if you feel the same, but I'm so glad that it's all over.

Finally, we can't ignore the stock market. It's at an all-time high and continues to go crazy. This could be the market responding to the pro-business policies that the president is touting, or it could just be the fact that election is finally over and people are realizing that the world has not come to an end.

Overall, I think we're seeing positive demand for both buyers and sellers in the marketplace. I hope this information is helpful and valuable for you. If you have any other questions about the Richmond market or you're ready to buy or sell a home, give me a call or send me an email soon. I'd be glad to help!