Should I list my property with an upcoming federal election?
Homeowners often time their sale based on market trends, interest rates, and the economy. But with a federal election looming, could political uncertainty make selling now a smart move—or a risky one?
When deciding the best time to sell a property, many homeowners consider seasonal housing market trends, interest rates, and economic conditions. But what about an election? With an Australian federal election approaching there is potential for political uncertainty. You may be wondering if listing your property during an election period is a smart move or a risky gamble.
How do elections impact the real estate market?
“As we approach an election period, some vendors may feel uncertain about how it could impact the sale of their property. However, history has shown that any market fluctuations during elections are typically short-lived and influenced by local conditions. In fact, we often see a strong pulse in market activity post-election,” says Nick Boyd, CEO Belle Property.
What are some of the potential challenges of listing during an election?
- Buyer hesitation – Some buyers may take a "wait-and-see" approach, delaying their home purchase until after the election results are declared. This hesitation can lead to fewer offers and potentially longer time on the market.
- Market uncertainty – Economic uncertainty can affect interest rates, lending policies, and overall consumer confidence. If buyers believe that mortgage rates or housing policies could change, they may hold off on making a decision on purchasing a property.
- Media distraction – During an election, news cycles are dominated by political coverage, meaning real estate listings may get less attention from potential buyers who are more focused on election-related news.
What are reasons to list your property despite an election?
- Reduced competition – “For those considering selling, launching a campaign during this time, I believe, can still lead to a successful outcome as supply is usually low, creating less competition,” says Nick Boyd.
Some sellers may choose to delay listing their homes due to election concerns. If fewer properties are on the market, your home could stand out more to serious buyers.
- Motivated buyers – While some buyers may wait, others might be highly motivated to purchase before potential policy changes take effect. Those already in the market are often ready to act quickly.
- Stable long-term market trends – While elections can cause short-term fluctuations, real estate is generally a long-term investment. Housing demand doesn’t disappear just because an election is happening.
- Interest rates matter more – Mortgage rates and affordability have a greater impact on buyers than an election. If interest rates are favourable, many buyers will proceed with their plans regardless of political uncertainty.
Should you wait or list now?
If you’re thinking of selling your property with the federal election approaching, weigh your personal circumstances and local market conditions.
While elections can influence buyer confidence, they are just one of many factors affecting real estate. If you’re prepared and your property is competitively priced, you can successfully sell your home even during a federal election. Consulting with a local real estate expert can help you navigate the best strategy for your unique situation.