With the Provincial election just around the corner, many potential homebuyers and sellers are facing a common dilemma: should you make a move during an election cycle, or wait for the dust to settle? When housing policies are a focal point of every major party’s platform, it's no wonder that some may be hesitant to buy or sell during this period of political uncertainty.
Key Focus: Sustainability, cooperative housing, and tenant-centric policies.
In this post, we’ll explore how election cycles affect the real estate market in North Vancouver, and provide strategies to help you make an informed decision, whether you’re looking to buy a home or sell your property. Generalized housing policy positions of the three major Provincial parties are included at the end of this blog
How Do Elections Affect the Real Estate Market?
During an election cycle, it's common to see a slowdown in real estate transactions. Buyers and sellers often adopt a “wait and see” approach, unsure of how potential policy changes will impact their investments. This period of uncertainty can cause a temporary dip in market activity.
For Home Buyers:
Less Competition: If you’re a buyer, a slower market means less competition. Fewer buyers could give you an advantage, allowing you to negotiate better deals or secure your desired property without the stress of a bidding war.
Potential Policy Changes: Keep in mind that changes in housing policies could affect you in the long term. For example, if a party proposes changes to property taxes, zoning laws, or affordable housing initiatives, these policies may impact your future financial plans or home value.
For Home Sellers:
Serious Buyers Only: While market activity may slow, the buyers still actively looking are typically more serious. This could mean fewer showings, but a higher likelihood of finding a committed buyer who is ready to act, even during uncertain times.
Timing the Sale: Some sellers opt to wait until after the election for a clearer picture of the market. However, if many homeowners follow this strategy, it could lead to an influx of listings, increasing competition and potentially driving prices down.
Should You Buy or Sell Real Estate During an Election Cycle? Factors to Consider
Party Platforms and Housing Policies: Each political party has different approaches to housing affordability, rental restrictions, and development incentives. If any of these policies could impact your buying or selling decision, you may want to evaluate the potential consequences of each party's platform before making a move.
Current Market Trends: Beyond election-specific factors, keep an eye on real estate market trends like mortgage rates, housing supply, and demand. These elements often have a more immediate impact than election outcomes, especially in hot markets like North Vancouver real estate.
Your Personal Situation: Are you buying a home for the long term or looking to sell quickly? If your personal circumstances dictate a move, waiting for the election results might not be an option. Always prioritize your unique situation over general market speculation.
Strategies for Homebuyers and Sellers During an Election
For Home Buyers:
Monitor Local Market Conditions: Stay informed about both political changes and market activity. Are housing prices fluctuating? Are mortgage rates expected to rise? Understanding the full picture will help you decide whether now is the right time to buy.
Act Strategically: If you find a home that meets your criteria and fits within your budget, don't hesitate to move forward. Waiting for post-election clarity may cause you to miss out on favorable conditions such as low interest rates or less buyer competition.
For Home Sellers:
Prepare Your Property: Selling during a period of uncertainty requires making your home as appealing as possible. Invest in professional home staging, high-quality photos, and a robust marketing strategy to attract serious buyers during a quieter market.
Flexibility is Key: Be prepared for fewer showings but recognize that buyers active during this period are likely serious. Position your home well in the market, and be willing to negotiate if necessary to close a deal with motivated buyers.
Why Elections Could Present Unique Opportunities
While some see election cycles as a period of risk, they can also present opportunities for both buyers and sellers. The potential for housing policy changes, along with fluctuations in interest rates and housing supply, means there could be unique opportunities if you know how to navigate the market effectively.
Conclusion: Stay Informed and Take a Personalized Approach
Whether you choose to buy or sell a home during an election cycle depends largely on your personal circumstances and how comfortable you are navigating uncertainty. At the end of the day, there is no perfect answer, but with careful planning and the right guidance, you can make an informed decision that best suits your needs.
Looking for expert advice on navigating North Vancouver’s real estate market during the election? Contact me today and we can discuss you specific situation!
Best
Greg
Greg Pearson Personal Real Estate Corporation / Lolocondo.com November 4 2024
Below is a generalized summary of the housing policies of the three major Provincial parties
BC NDP
Affordable Housing: Focus on building non-profit, co-op, and public housing. Plans to expand affordable housing through public investments.
Tenant Protections: Strong rent control measures, including potential vacancy control (preventing rent hikes between tenancies).
Speculation Tax: Expansion of the Speculation and Vacancy Tax to curb foreign ownership and speculation.
Zoning Reform: Support for rezoning single-family lots for more density (duplexes, triplexes).
Key Focus: Government-led affordable housing and tenant protections, with controls on speculation.
BC Conservatives
Market-Driven Supply: Focus on increasing housing supply through private development, reducing red tape, and streamlining approval processes.
Tax Relief: Opposition to the Speculation Tax, proposing tax incentives for developers to build more purpose built rental homes.
Homeownership Assistance: Programs to make homeownership more affordable, primarily through tax relief measures
Zoning Flexibility: Support for rezoning but with a focus on working with developers and municipal governments.
Key Focus: Market-based solutions to increase supply, tax incentives for development, and promoting homeownership.
BC Green Party
Sustainable Housing: Prioritize environmentally sustainable building and community land trusts for cooperative housing models.
Affordable Rentals: Support for expanding co-op, non-profit, and rental housing.
Land Speculation: Propose a Land Value Capture Tax by taxing any "unearned" increase in land value
Tenant Protections: Strong tenant rights advocacy, including support for vacancy control.