Clinton or Trump better for housing market?
By Ron Trujilloemail@example.com
Homeowners often worry about many things that could impact the value of their home.
Well, don’t worry about the battle between billionaire businessman Donald Trump and former First Lady and Secretary of State Hillary Clinton.
Their accusations, finger-pointing and name-calling won’t likely affect the market.
Presidential elections have historically had little or no negative effect on the housing market in the state, according to a new study by the California Association of Realtors.
“Transitory political events, such as presidential elections, don’t drive the housing market,” says CAR President Pat “Ziggy” Zicarelli. “Market fundamentals such as housing inventory, affordability, interest rates, job growth and consumer confidence are the real factors that influence the housing market.”
But presidential elections have impacted home sales activity during the final months of the year, according to the report. In fact, election year sales increase 7.1% in the fourth quarter compared to the same three-month period in non-presidential election years.
On a monthly basis since 1990, California home sales declined about 2% during the final four months of the year, while sales increased 5.3% in presidential election years.
But presidential election years had little impact on home prices.
So, as much as the candidates debate who would be better (or worse) for the economy, neither will have a negative effect on the California housing market in the coming weeks.
Clinton-Trump photo courtesy of Rich Girard via @Flickr.
7 of 10 least affordable markets in California
The average resident in Marin County and Santa Cruz would need to use every dollar of their annual income and then some in order to own a home.
The two counties are the second- and third-least affordable counties in the nation, behind first-place Brooklyn, N.Y., according to a RealtyTrac report published by Realtor.com. Marin County residents would need to spend 118% of their annual income, while the average Santa Cruz resident was at 114% to afford the average-priced home in their respective communities.
San Francisco was the fourth least affordable market in the nation, with San Luis Obispo finishing in sixth place. Napa (No. 7), Monterey (No. 8) and Sonoma (No. 10) round out the seven cities in the top 10 nationwide.
Now, San Francisco and San Jose are the most expensive major markets in the state, but the average resident in those cities earns more money, making them more affordable.