Managing Your Wealth—Buying And Selling Real Estate In An Election Year
Posted: Tuesday, August 2, 2016 – 2:24 PM
Insights From Capital Trust Escrow with Hami Gabayan, CEO
Q. Do presidential elections affect the real-estate market?
A. Yes. Elections have historically affected home prices with a lower percentage increase in value. According to a movoto.com study, the real-estate market typically rises 1.5 percent less during an election year, contrary to a non-election year.
Q. Why does an election affect home prices?
A. Uncertainty. Markets do not like uncertainty and election outcomes are relevant to corporate decisions, industry regulation, taxation, and inflation. All these factors have significant impact on the price of real estate. In some cases, buyers may not feel comfortable enough with the uncertainty to make such a large purchase.
Q. What does the market look like for the 2016 elections?
A. With the election looking to be very close this year, there could be a decrease in sales until after the election. According to a report from Kiplinger, home prices will only increase by 3 percent in 2016, which is lower than previous years nationwide. However, in an uncertain market, there will be buyers looking to take advantage of the uncertainty and risk.
Q. Should you wait until after the election to buy or sell your property?
A. The honest answer is, it’s a very personal choice. While the data predicts various outcomes, the bottom line is it’s always wise to get advice from a trusted real estate agent who can review your specific situation and help you make an informed decision. In Beverly Hills, we still see homes and properties with multiple offers that sell above the asking price. In the end, it always comes down to the price, comps, and what a buyer is willing to pay.
Q. Who is Capital Trust Escrow?
A. Capital Trust Escrow (CTE), based in the heart of Beverly Hills, is a 100 percent independently owned escrow company with no affiliations. In just three years, Capital Trust Escrow has handled approximately $1.5B in transactions. CTE has grown to a staff of 14 people with over 100 years of combined escrow experience. CTE provides superior escrow services for residential and commercial properties, apartment buildings, bulk sales, and liquor licenses. CTE is located at 280 S. Beverly Dr. Suite 300, Beverly Hills, CA 90212. For more information, visit the website, www.capitaltrustescrow.com or call 310-273-0100.
Hami Gabayan is the founder/CEO of Capital Trust Escrow. He is the current president of the Los Angeles Escrow Association and has been in the escrow industry for more than 13 years. Gabayan has a J.D. from Loyola Law School and an B.S. in neuroscience from UCLA. Additionally, Gabayan is currently a delegate of the American Escrow Association and a board member of the California Escrow Association. Gabayangrew up in Beverly Hills and is a BHHS graduate.