Politics and Real Estate: Does a 2008 United States Presidential Election Year Change Our Real Estate Market?

Thanks Pete Southwood for this flag photo.
Lately, I have been hearing many realtor’s and other industry insiders speak about how the 2008 United States presidential elections are affecting the real estate markets. So, how will our pending presidential elections affect our struggling markets in the coming year? Will politics shift the tides in the real estate markets?

It is obvious that real estate will be a topic of conversation in the 2008 political elections. Just take a look at the Boston Globes article entitled, Democrats Offer Fixes to Foreclosure Crisis.

The more the crisis ripples through the economy, the more it will help Democrats make the case that Republican economic policies have spurned middle- and lower-income families, some campaign watchers said. - Marcella  Bombardieri at the Boston Globe

Why so much attention you may ask? Because our real estate markets have slowed from the bottom up. This leaves some areas like the Bay Area’s high end real estate market still appreciating while the middle and low end markets are suffering. The little guy has been most hampered by the liquidity crisis and kicking the little guy is never politically correct. Thus we are already seeing many new legislative bills that are aimed at creating a better buying and selling environment. Some of these bills are trying to get rid the IRS’s short sale phantom tax collections. Others are aimed at making the mortgage and banking industry’s actions more transparent to the consumer. The topic of real estate has even found its way into the discussion of the falling dollar value verses other world wide currencies.

The Matrix Blog has a great posting entitled, Housing Market Depreciates the Politics of Future Expectations. This article illustrates those political figures that are pushing housing concerns to the top of the political mountain. Personally, I am neither for or against any particular political reform to address our current housing cycle. Using my little voice, I am encouraging all politicians to focus on legislation spurring US economic growth as a whole and discouraging them from endorsing legislation that they believe will garner more votes.

One bet is for sure… Real estate and finance will be at the forefront of the 2008 elections, which illustrates how important real estate is for wealth generation and personal prosperity.