Can the real estate market be affected by politics?

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The world of politics is definitely a place of great mystery. Undoubtedly, all those who are part of it can agree upon this statement. Politics involves many, many things one would have never imagined possible. Sometimes, it is simpler to wonder which markets or fields are not influenced by politics, because the list of those that are, is a long one. However, the connection between economy and politics is no secret to anyone. There is not one individual that has not noticed the connection between the two. This is a general perspective, a statement that is true and valid in all parts of the world. Economy is terribly influenced by politics and the other way around. Still, this does not answer the question of the article or so it would seem.

Economy is the one thing all fields and markets have in common. If you were to identify a connection between the health system and the real estate market, then this would certainly have to be economy. Now to answer the question of the topic, perhaps another question, this time of a rhetorical nature, would do. Is not economy greatly influenced by politics and if so, are not all fields, indirectly, affected by politics? Of course the answer is yes. Individuals do not hurry to pass on some judgments, because it is rater difficult to clearly point out the exact manner in which politics affects the real estate market. However, the best time to search for such pieces of evidence would be the time of elections. Indeed, as soon as the race between candidates begins, all sorts of promises and changes seem to make their presence felt. They would do practically anything to see their voters happy, including offering help to the real market to grow and improve. You should keep in mind that all these positive changes come after a time in which this market was completely shattered. For instance, during the elections, Canadian candidates found that it was a rather smart move to encourage the real estate by loosening the standards connected to Ottawa mortgage rates. This will make many individuals to buy properties and so the real estate market will be seriously improved.

 

There is however a catch, which economists find it to be rather dangerous on a long term. If you adequately recall, the 2008 economic crises started out from the artificial growth of the real estate market that was actually stimulated by all the changes that took place during elections. Apparently, loosening mortgage rate standards only increased the bad credit numbers. It seems that once encouraged to make mortgages, people founded difficult to stop. Finally, this has led to a serious downfall of the real estate market. In conclusion, it is obvious that politics has the power to greatly influence any field and market. However, elections or not, Canada or the United States of America, it is imperative to know when to stop. This is the problem with capitalism and democracy, there is no set limit, making people believe that all is possible, when reality is completely and utterly different.