Richard Eimers, Broker Owner, November 12, 2024
As the dust settles from the recent election, with Donald Trump emerging as the president-elect, many are wondering about the potential impact on the housing market, particularly in resort areas like Destin, Santa Rosa Beach, Miramar Beach, and Inlet Beach. While it’s important to note that presidential elections typically cause only short-term fluctuations in the real estate market, there are some factors to consider for these popular vacation destinations.
In the immediate aftermath of the election, we may see a brief pause in home sales as buyers and sellers adjust to the new political landscape. However, this slowdown is expected to be temporary. Historically, home sales tend to rebound in the year following a presidential election, with an increase occurring 82% of the time.
For the resort second home and vacation rental markets in Florida’s Emerald Coast, several factors could come into play:
- Economic policies: Trump’s proposed economic policies, including potential tax cuts and deregulation, could boost consumer confidence and spending power. This might lead to increased investment in second homes and vacation properties.
- Tourism: The new administration’s approach to international relations and travel policies could affect tourism in these coastal areas. Any changes in visa regulations or international travel restrictions may impact the demand for vacation rentals.
- Environmental policies: Given the coastal nature of these communities, any shifts in environmental regulations or climate change policies could have long-term effects on property values and insurance rates.
- Real estate investment: Trump’s background in real estate might lead to policies favorable to property investors, potentially stimulating growth in the vacation rental market.
For potential buyers in these areas, it’s worth considering that waiting for the market to settle post-election could carry risks. These include potentially missing out on currently favorable mortgage rates and facing increased competition if many buyers flood the market simultaneously after the inauguration.
Sellers in these resort communities might benefit from pricing their properties competitively in the coming months. With some sellers potentially holding off, those who list now may face less competition and attract serious buyers who are ready to make decisions regardless of the political climate.
It’s crucial to remember that while national politics can influence the housing market, local factors such as job growth, population trends, and specific community developments often have a more direct impact on real estate in areas like Destin and Santa Rosa Beach.
As we move forward, it will be important to monitor how Trump’s policies unfold and their specific implications for the Florida Panhandle’s resort communities. Consulting with local real estate professionals who have in-depth knowledge of these markets can provide valuable insights tailored to your specific situation.
Ultimately, while the election may cause some short-term hesitation, the allure of Florida’s beautiful beaches and the strong appeal of vacation properties in these areas are likely to remain constant, continuing to drive interest in the region’s real estate market.