Do Elections Impact the Housing Market?

With the 2024 Presidential election fast approaching, you might be wondering if this significant event will affect your plans to buy or sell a home. It’s a valid concern, given that buying or selling a home is one of the most important decisions you’ll make. So, how do elections impact the housing market?

Historically, Presidential elections have had only a small, temporary effect on the housing market. Let’s explore what typically happens to home sales, prices, and mortgage rates during these times.

Home Sales

During election years, particularly in November when the election takes place, there’s usually a slight slowdown in home sales. This slowdown is mainly due to the uncertainty that surrounds the election period. People tend to hesitate in making big decisions amidst such significant events. However, this dip in activity is short-lived. Home sales generally bounce back in December and continue to rise into the following year.

Home Prices

You might wonder if home prices drop during election years. The good news is that they typically don’t. Residential appraiser and housing analyst Ryan Lundquist explains:

“An election year doesn’t alter the price trend that is already happening in the market.”

Home prices are quite resilient and tend to rise year-over-year, regardless of election cycles.

Mortgage Rates

Mortgage rates are crucial because they determine your monthly payments when you purchase a home. During election years, there may be slight fluctuations, but these changes are usually not drastic enough to significantly impact your decision to buy a home. Moreover, if mortgage rates are lower, this could benefit you by reducing your monthly payments.

What This Means for You

So, what should you take away from this? While Presidential elections can influence the housing market, the effects are generally small and short-term. Most buyers and sellers won’t experience a significant impact on their plans.

Bottom Line

While it’s normal to feel uncertain during an election year, historical data shows that the housing market remains robust and resilient. If you have any concerns or questions, don’t hesitate to reach out to a local real estate agent. They can guide you through the market, regardless of the election cycle.