Donald Trump is now the official Republican Party presidential nominee after announcing his run more than a year ago. Redfin analysts looked at selling success metrics before and after Trump’s presidential campaign began to see whether there was any correlation between his political presence and how well homes in his buildings were selling.
As it turns out, there is.
-In 2015, Trump units had a sale price premium of 6.8% compared with similar homes. In 2016, Trump units no longer exhibited a sale-price premium.
-Looking at prices on a per-square-foot basis, Trump units sold at a premium of 9.0% or $97 compared with similar units in 2015. In 2016, the effect became insignificant.
But are Trump’s politics to blame? Not so fast.
“Trump condos have lost the price advantage they enjoyed before the campaign and are starting to sell similarly to comparable condos. While it’s tempting to blame politics, it’s likely that market conditions have changed, making it harder for uber-luxurious condos to fetch top dollar,” said Redfin chief economist Nela Richardson. “The luxury market has been fighting a chill since late last year and even the gold-plated faucets in Trump’s bathrooms can’t overcome a slowdown in demand from wealthy buyers caused by the rocky global markets in 2016.”