In days gone by the timing of an election might have slowed the property market.
A common belief was that different parties’ policies might make buying and selling harder or easier. It cast doubt in purchasers or vendors’ minds ahead of election day, ensuring they ‘best sit tight until we know who is in government.’ In 2023 however, an election is not such a big deal for the market.
Sandra Macnamara is Business Development Manager at PGG Wrightson Real Estate, Southland/Central Otago. She says the upcoming election has no effect on the Southland market.
“As far as the vast majority are concerned, we are heading towards a normal to warm spring market. People with money don’t care about the election: they are going to go ahead and pursue their property aspirations anyway. For us it is business as usual.”
PGG Wrightson Real Estate Lower North Island Sales Manager Wayne Brooks also expects the upcoming election will only have a minor influence.
“Our job is to facilitate sales, for which we need to understand what the market will do. If you sit and wait, who knows what is going to happen? With an election, you can’t influence the outcome, you can only guess.
“Other factors have a greater influence on the property market than the election will. Interest rates have risen, that won’t change regardless of the election result, which affects the ability to borrow, and the ability to repay.
“You can only deal with what we are currently dealt. The economic cycle has much greater impact on market sentiment than the timing of the election. I tell anyone concerned about the election not to get caught up in what you think may or may not happen. If you can’t control it, there’s no point worrying about it,” says Wayne.
Camron Meade, PGG Wrightson Real Estate Sales Manager, Central North Island says blaming a market hiatus on an election does not hold true.
“Market cycles carry on in their own way without a change of government having much impact. Anyone considering investing or making other property decisions should only take minimal notice of the political campaigns.
“Factors, particularly interest rates and the cost of living, are more decisive when people are looking to buy or sell property. Using the election as a reason is just a convenient excuse,” says Camron.
“The idea that there is a market hiatus leading up to an election is only a perception. It has no rational basis.
“Our advice, whether you are contemplating selling or purchasing - there is no need to pay undue attention to what is happening in the political spectrum. People make decisions about property for other reasons, whether that be to upsize, to downsize or to relocate.
“Most people will get on and do what they need to do regardless.”
Photo Credit: Electoral Commission
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