Vail Daily column: How will elections affect real estate?
What is going to happen to our economy after the elections next week? I am trying to make some investment plans with a few properties I own here and struggling with deciding to wait for the market to get better, or do you think it could get worse in the next year? I read the Wall Street Journal and the business sections of the Denver Post and anything else I can find, and I am still conflicted on making any decisions, as it seems the advisers are all over the board. Can you give me anything to base my decisions on?
The sun is going to come up and everything will go on as “business as usual” the day after the elections, and probably for many more months. Then there will start to be some subtle changes, is my prediction. According to Gary Keller, owner of the largest real estate franchise in the world, there will be a “shift”, that actually has already started. Prices will slowly drop and inventory will increase, nationwide, in the real estate market. You could say Denver’s market has already started to show some signs of this. The front range market was “fabulous” and it is down to just “great” now. This does not have anything to do with the elections, more just economic swings, I believe.
On the other hand, our valley’s market is driven by many Buyers and Sellers with great wealth as well as Buyers and Sellers from the Front Range. They will still be wealthy after the elections, but if they don’t feel the economy is going in their favor, they may be less anxious to spend as freely as they had been doing before the political changes. This certainly could have an affect on our market. I would say that our market is excellent now. Anyone with experience in the world knows that nothing stays the same. I believe our market always lags behind the non-resort areas, and we are going to continue our positive cycle for longer, and not experience as deep of a shift.
Every purchase and sale of real estate has a leap of faith that it will work out as planned, but there is never 100 percent certainty. My advice is two fold. As always, find a knowledgeable, competent Realtor that will take the time to run some numbers and scenarios with you about selling now, selling some now and some later, waiting on everything, doing a tax deferred 1031 exchange, etc. Secondly, carefully examine your goals and what works best for you and your loved ones. Real estate decisions are not always just about the money. Good luck to you and don’t forget to vote.
Joan Harned is an owner and broker for Keller Williams Mountain Properties and heads up Team Black Bear, her own real estate team. Harned has been selling real estate in Eagle County for 27 years, is a past chairman of the Vail Board of Realtors, past Realtor of the Year, past director on the Great Outdoors Colorado Board and a member of the Luxury and Land Institutes. Contact Harned with your real estate questions at Joan@TeamBlackBear.com, 970-337-7777 or http://www.SkiAnd TeeHomes.com.