Welcome to the year 2024. Election Year. The candidates are at their stands, battling for the hearts and votes of the people. Who will win? And what affect will it have on the housing market? More specifically, the lake homes, luxury properties, and secondary residences. Is now the best time to buy, or should we be playing the waiting game and see what 2025 brings? Let’s take a look at some data, but lets set the record clear from the start. While data will be used to support both sides, the housing market, like the stock market, is highly unpredictable. With that said, let’s dive in.
Answering the COVID question
It is a common misconception that PK has “inflated COVID pricing”. The reality is that while prices did go up during the 2019 and 2020 years, they have continued to go up even to today. While many businesses are moving back towards a hybrid schedule of “in-office” and “remote”, many businesses are rewarding their employees, who prove they can remain productive from home, with the ability to stay 100% or at least majority time remote. This has allowed the driven employees the ability to step into remote lakeside living.
Additionally, PK still remains a central point from across the entire state of Texas. Because of its rural waters, there’s not a city devouring it and limiting its expansion. This is one of the reasons why PK has always been an “escape” from the hustle and bustle of the big city. While there are multiple restaurants and grocery stores ,like The Trading Post, PK General Store, and Possum’s Corner, the nearest actual city is typically about 10-20 minutes away in Graham, Mineral Wells, or Breckenridge. Many families come to PK looking for a lake home. When I ask “why PK?”, they usually explain that they’re looking for a place between Waco, Austin, Dallas, or Lubbock. They typically tell me they “have kids going to school, or extended family in one of those cities. PK is a common middle ground between Abilene, Midland, Amarillo, Houston, or San Antonio”. Possum Kingdom has had a long history of bringing families closer through memories made and bringing people together with centrality.
What about the election though?
So what does this have to do with the election year? Simply put, all this just speaks to the stability of the Possum Kingdom Market in general. It is expected that should a Republican gain office, whether that be former President Donold Trump or Ron Desantis, the interest rates on loans are expected to go down from their exorbitant prices. On the other side, should a more left leaning candidate win, like President Joe Biden, Nikki Hailey, or other another last-minute candidate, there have been many people using that as an opportunity to move their assets from the stock market and place it in less liquid, but more stable assets such as real estate.
The secondary home market, and especially the luxury home market, typically avoid the downfalls of the traditional home market. In every economy, there are people who are making it big and looking for additional real estate. In the case of Possum Kingdom Lake, when the blue-collar economy of West Texas is booming and the white-collar jobs aren’t seeing the profits yet, PK is a middle ground for them to exchange property. And when the oil field busts on it’s regular cycle, but the stock market and white collar is “popping”, again, PK sits in the middle and we watch those properties change hands again.
Let’s “fact check” this for a moment. Just because everything I’ve broken down indicates that the market is always going up, it’s not always the case. Additionally, all this information does not mean that all list prices are the true market value of their attached properties. That’s why it’s critical to find a LOCAL lake agent who understands the PK market. While we have many agents who come in from the metroplex or Wichita Falls, even Abilene, they often do not understand the market in such a way that they can put Buyers’ and Sellers’ best interests first thus getting them the best possible prices. PK is littered with DFW and out of market agents who use the deep waters for their own R&R. That doesn’t mean they practice in the area. As a local agent, it genuinely hurts when I get a call from a property owner looking to list their property, which they purchased from an out-of-town agent at an overpriced value, and now they realize that even after years of “appreciation”, their property isn’t worth what they paid for it. Even among local agents, some agents have become notorious for overpricing their properties. Read More on Geographic Competency
As a teammate of the top producing brokerage at PK for the past 4 years, who has the longest tenure and has sold the most property at PK Lake, we more than understand people who purchased their primary residence with one agent and want to continue using that agent. We have it happen all the time at PK Lake. We also recognize that we do NOT know other marketplaces as well as the full-time agents in that area. That’s why we refer our clients to someone local, who knows the area, who can insure they get the best price, who will care for our clients in their new city the way we would care for them at PK. This is the PKRE way.
Bringing it to a close
In conclusion, the question still remains, “should you be looking to buy or sell in an election year?” The answer is as complicated as the Washington DC closed door hierarchies. There’s not a simple answer. The data would indicate that no matter the political party taking charge, the secondary home market is continuing to grow, and Possum Kingdom Lake remains one of the deepest, most diverse topography, and most beautiful lakes centrally located in Texas. A true escape that has not become overcrowded and swallowed by suburban cities, micromanaged by city councils and county commissioners.
Article was written by Matthew Renfro
Photos were taken by Matthew Renfro