(NASDAQ: RDFN) -- In the three years since Donald Trump won the presidential election, the typical "Trump" branded condo (excluding those in New York City, where the data was unavailable) sold for an estimated $729,000 nationwide, according to a new report from (www.redfin.com). That's 20% more than the typical sale price for comparable luxury condos, but down from the 28% price premium Trump-branded condos fetched in the three years preceding the election. That price premium first dropped the year after the election and has held steady since.
Luxury condos in the 10 areas tracked by Redfin where Trump buildings are located sold for less in the post-election period (November 2016 through mid-November 2019) than before the election (January 2014 through October 2016). The typical sale price for a Trump-branded condo dropped 16% post-election, while comparable luxury condos sold for 10.5% less after the election.
That's from a Redfin analysis of Trump-branded and comparable luxury condos in the U.S. except for New York City, where multiple-listing data was unavailable for transactions of Trump properties. The research compared the properties by sale price, price per square foot and time on the market, with results controlled for features such as location, size, views and number of bedrooms and bathrooms.
Housing market data for Trump condos and comparable luxury condos, before and after the 2016 presidential election
Pre-election (Jan. 2014 - Oct. 2016) Post-election (Nov. 2016 - Nov. 2019) Median sale price of Trump condos $868,750 $729,000 Median sale price of comparable luxury condos $760,000 $680,000 Average price premium (%) for Trump condos 28.1% 20.4% Median price per square foot for Trump condos $713 $606 Average price-per-square-foot premium (%) for Trump condos 18.6% 8% Median days on market for Trump condos 95 (versus 67 for non-Trump condos) 86 (versus 57 for non-Trump condos) Total Trump condos sold 532 542
While the data suggests sellers can still expect to fetch a higher price for a condo in a Trump building than other luxury units, in some areas, the political landscape may work to buyers' advantage.
"The Trump brand has taken a hit in urban, Democrat-leaning towns like Chicago," said Daniel Close, a Chicago Redfin agent. "I helped a buyer purchase a one-bedroom condo in Trump Tower last December. It was originally listed for $1.5 million and the price had dropped to $1.29 million by the time we looked at it three months later. We negotiated the price down about $15,000 and the seller threw in $100,000 worth of furnishings and a parking spot worth $70,000."
"I've frequently seen sellers take net losses on homes in Trump Tower. Smaller units especially have not appreciated well over the last few years," Close continued. "Larger multi-million-dollar units that attract more affluent buyers do tend to fare better."
Condos listed for sale in Trump-branded buildings are less likely to mention the name "Trump" in 2019 than pre-election
Sixty-five percent of condos listed in Trump-branded buildings mentioned the name "Trump" in marketing remarks from January through mid-November 2019, down from a high of 81% in 2015, the year before he was elected president.
"It's not surprising that sellers and their agents are less likely to identify a home with Trump now that he's president, as that could limit their buyer pool," said Redfin chief economist Daryl Fairweather. "Marketing to just one side of the aisle--even if it's just mentioning a politician's name--could mean half as many potential buyers see a home."
To read the full report, please visit: https://redfin.com/trump-real-estate-values
About Redfin Redfin (www.redfin.com) is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, subscribe here. To view Redfin's press center, click here.
Contact RedfinRedfin Journalist Services: Isabelle Novak, firstname.lastname@example.org
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