What Does the Huge Northam and Democrat Win in Virginia Mean for Real Estate?
Earlier this week the Democrats had a huge win in Virginia statewide elections as Ralph Northam won the governor’s race by over 9 points. They also won the races for lieutenant governor and attorney general and gained at least 14 seats in the House of Delegates. So what does this mean for VA real estate with Northam?
Northam Advocates for Virginia Real Estate
Earlier this year the Virginia Association of Realtors declined to make endorsements for the statewide races. Although in the past they had endorsed Northam for lieutenant governor they believed both candidates would be advocates for the real estate industry.
Potential Downward Pressure on the Luxury Market
During the race, real estate issues took a backseat to several other issues and so it seems most likely that much of the current state of affairs will remain the same. Northam did state he would support increasing grantors tax. In theory, this would raise prices as sellers would net slightly less when selling their home. However, the current rate amounts to roughly a quarter of a percent and an increase would probably have little effect, if any, on prices. Northam has also favored a one percent increase in taxes on income above $500,000. In theory, this could cause some of the highest earners to have less money to spend on a house so it could put downward pressure on the luxury market. Like the potential grantors tax increase, I think this effect will be minimal, if at all.
So what is the bottom line for real estate based on the recent democrat election results in Virginia?
Expect more of the same.