• calendar_month August 30, 2024
• folder Uncategorized

As we approach another Presidential election, we understand how easy it is to feel a mix of curiosity and concern about what’s ahead. The thought of what might happen can leave you feeling uncertain, especially if you're considering buying or selling a home. We’re here to share some reassuring insights to help you feel more confident in your decisions during this time.

It might surprise you to learn that Presidential elections usually have only a small, temporary impact on the housing market. Yes, your questions are valid, and we’re here to help you find the answers so you can move forward with peace of mind.

Let’s take a walk through history together and explore how home sales, prices, and mortgage rates have reacted during past Presidential election cycles. This way, you can make informed choices with the comfort of knowing what typically happens in the housing market during these times.

Home Sales: A Temporary Pause, Then a Bounce Back

In the month leading up to an election, from October to November, there’s often a slight slowdown in home sales. Some folks prefer to wait until the election dust settles before making big decisions. But here’s the good news: this slowdown is usually small and short-lived.

In fact, history shows that home sales bounce right back and continue to rise the following year. After 9 of the last 11 Presidential elections, home sales increased the next year, a trend that’s been consistent since the early 1990s.

Home Prices: A Steady Climb

You might be wondering if home prices drop during election years. The answer? Not typically. As one housing analyst puts it, an election year doesn’t change the price trends already at play in the market.

Home prices generally rise over time, regardless of who’s running for office. So, you can expect the current pricing trend in your local market to likely continue unless there are unusual circumstances.

Data from the National Association of Realtors (NAR) tells us that after 7 of the last 8 Presidential elections, home prices went up the following year. The one exception was during the housing market crash of 2008-2009, a time that was anything but typical.

Mortgage Rates: Easing Into Comfort

We know that mortgage rates are top of mind when you’re thinking about buying a home. They play a big role in what your monthly payments will look like. Looking back at the last 11 Presidential election years, mortgage rates decreased from July to November in 8 of them.

And this year, we’re already seeing that trend. Most experts are predicting that mortgage rates will continue to ease throughout the rest of 2024. If that holds true, it could be a wonderful boost for your purchasing power if you’re planning to buy a home soon.

What This Means for You

So, what’s the big picture? While Presidential elections do have some impact on the housing market, the effects are usually minimal. As Lisa Sturtevant, Chief Economist at Bright MLS, puts it, “Historically, the housing market doesn’t tend to look very different in presidential election years compared to other years.”

For most buyers and sellers, the election won’t have a major impact on your plans.

Bottom Line

We know it’s natural to feel a bit uneasy during an election year, but history shows that the housing market is strong and resilient. This means you can move forward with your plans without having to hit pause. We’re here to help guide you through the market during this election cycle, so don’t hesitate to reach out to us. Together, we’ll find the right path for you, no matter what’s happening in the world of politics.