Past data show that property values drop during presidential election years, with bigger decreases when the election is hotly contested.
According to data from the California Realtors Association, housing appreciation drops by 1.5 percent in presidential election years. The next year produces an average increase of 0.8 percent. In addition, a 2012 study in the British Journal of Political Science found that the rate of decrease during an election year can be greater if the race is tight.
Why? Presidential elections portend potential changes in economic and housing policies, which make many real estate buyers and investors wary. The tighter the contest, the higher the investor anxiety, and buyers sit on the sidelines until the election is over.
Experts are predicting a 2 percent drop in housing appreciation because of this closely contested presidential race.