SAN FRANCISCO–What is the consumer perception of the housing market? That depends largely on whether they identify as Republican or Democrat.
According to a new survey commissioned by Trulia, voters get bullish when their candidate wins and bearish when their candidate loses.
The latest elections are a prime example. Trulia reported that during the last week of October, when Hillary Clinton was ahead in the polls, respondents who identified themselves as Republicans said that 2017 would be worse than 2016 for selling a home, buying a home, getting a mortgage, or finding rental housing. Democrats thought that 2017 would be better in each of those categories. After Donald Trump won the presidential election, outlooks for Republican and Democratic respondents flipped—in every category.
“It’s really not very intuitive,” said Ralph McLaughlin, chief economist at Trulia, in a released statement. “The second survey, for instance, was conducted after mortgage rates spiked in response to the election results. Even if your side wins, if mortgage rates go up, you might get pessimistic about your chances of buying a home.”
But other trends are also at work. Trulia noted that home inventory shortages are affecting markets on the coasts but not so much in the Midwestern and Southern states that voted red.