Election and the Sales Market

There is reason to believe that house prices can affect a general election and this can be tracked to a local level. High values can make homeowners feel better-off, economic confidence rises, people spend more money on other goods, the economy looks brighter and the current Government could possibly achieve some more votes.

But what of the impact of the general election on house prices?

Pre-election nerves

Recent figures from Nationwide showed that annual house price growth in the last quarter of 2014 to December was its most lethargic for over a year, in the south west prices increased by around 0.83% compared with 1.97% in 2013.

It indicated a faltering market where buyers are cautious of over-inflated prices and sellers may need to reset expectations after vigorous growth a year ago.

Post-results

Jitters in the housing market, thought to be caused in part by the election, do not necessarily translate into falling house prices.

Recent studies show that generally prices surge around the time of a general election and soon afterwards as pent up activity is released.

On average nationwide, prices 12 months before are 4.9% lower than at an election, while 12 months afterwards they are 8.6% higher.  To relate this to Exeter, we are currently running a little behind the pack.  In the last year prices in Exeter have risen by 2.17% according to Zoopla, which is just under 56% lower than the national average.  If this same 56% is translated to the next 12 months, that would indicate a potential increase of 3.78% for Exeter.

So does this mean sellers should wait until the election results to market their home?

Not quite. It is reported that election week is traditionally one of the busiest times in the housing market as a glut of sellers register their homes and competition becomes fierce.

It may be worth getting in there first in by listing your property for sale now to ensure it gets the maximum exposure and best price.  Please call or email me if you would like a sale appraisal or for more details. Regards, Jon.