As a realtor advising both millennial first-time home buyers and baby boomer home sellers, navigating the timing of buying or selling a home in the lead-up to a contentious election year can be challenging.
With interest rates expected to decrease soon, the decision becomes even more critical.
Here, we break down the pros and cons of buying or selling before and after the upcoming election.
Buying or Selling Before the Election
Pros:
-
Stability and Predictability:
- For Millennials: Locking in a mortgage rate now can shield you from potential post-election market volatility.
- For Baby Boomers: Selling before the election can secure your profit and avoid the uncertainty that follows elections.
-
Lower Competition:
- For Millennials: The market may have less competition right now, leading to better deals on homes.
- For Baby Boomers: With fewer properties on the market, your home might attract more attention and sell faster.
-
Interest Rate Certainty:
- For Millennials: With interest rates expected to drop soon, now is a good time to secure favorable financing terms.
- For Baby Boomers: Selling before interest rates drop ensures that buyers are still financially stable and capable of making good offers.
Cons:
-
Potential Overpaying:
- For Millennials: Buying now might mean paying higher prices if the market cools off after the election.
- For Baby Boomers: Selling before the election might mean missing out on higher demand and prices that could follow the election.
-
Economic Uncertainty:
- For Millennials: Economic policies might change after the election, affecting your long-term investment.
- For Baby Boomers: Uncertainty in the market might make buyers hesitant, which could impact the selling price of your home.
Buying or Selling After the Election
Pros:
-
Market Clarity:
- For Millennials: Post-election stability can provide clearer economic signals, helping you make a more informed investment.
- For Baby Boomers: Understanding the market direction post-election can help you time your sale for maximum benefit.
-
Potential Price Adjustments:
- For Millennials: If the market cools, better deals might become available.
- For Baby Boomers: Higher demand post-election might drive up home prices, increasing your potential profit.
-
Interest Rate Benefits:
- For Millennials: Lower interest rates after the election could mean more affordable mortgages.
- For Baby Boomers: More buyers can afford homes, increasing the likelihood of a quick sale.
Cons:
-
Increased Competition:
- For Millennials: More buyers entering the market could drive prices up, making it harder to find a good deal.
- For Baby Boomers: More sellers might flood the market, making it harder for your property to stand out.
-
Delayed Transactions:
- For Millennials: Waiting could mean missing out on currently available homes that meet your needs.
- For Baby Boomers: Delays in selling your home could affect your future plans, especially if you have already committed to a new home or retirement plans.
-
Policy Shifts:
- For Millennials: New policies introduced post-election could impact your financial situation or the overall housing market.
- For Baby Boomers: Policy changes might affect the attractiveness of your property or the desirability of your region.
Conclusion
The decision to buy or sell a home before or after the election hinges on your risk tolerance and financial goals.
-
For Millennials: If you value stability and can’t risk potential post-election fluctuations, buying now might be your best bet. However, if you’re patient and looking for the best deal, waiting until after the election could yield better opportunities.
-
For Baby Boomers: If you prefer certainty and want to lock in your profit, selling before the election is a safer choice. But if you’re willing to gamble on higher post-election demand and potentially higher prices, waiting might be more lucrative.
In either scenario, staying informed and working with a knowledgeable realtor can help you navigate these uncertain times with confidence!
