As the 2024 Presidential election approaches, you may be curious about its potential impact on the housing market. Let’s explore this together.

A Seasonal Slowdown

It’s normal for home sales to experience a slight dip in the fall, as we see each year. However, data from BTIG reveals that election years tend to bring about an even more pronounced slowdown in home sales in the month leading up to Election Day. Why does this happen? The answer lies in uncertainty. Many consumers hesitate to make significant decisions or purchases while awaiting election results. This pattern is well-documented, especially among buyers and sellers in real estate.

This year is no exception. A recent Redfin survey indicated that 23% of potential first-time homebuyers are choosing to wait until after the election to make their move. That’s nearly one in four first-time buyers hitting the pause button, largely due to feelings of uncertainty.

A Bright Side: Sales Bounce Back

The silver lining? These delayed sales are not lost; they’re simply postponed. Historical trends show that home sales typically rebound after the election. In fact, sales have increased 82% of the time in the year following an election.

Why does this occur? Once the dust settles post-election, buyers and sellers often feel more informed and confident, prompting a surge in home sales.

Looking Ahead to 2025

If history is any guide, we can expect more homes to sell next year. Current forecasts suggest that while the housing market is on track to sell around 4.6 million homes this year, it’s projected to reach 5.2 million sales in 2025. This aligns perfectly with the usual pattern of post-election recovery.

So, while it may seem like the market is slowing down right now, this is likely just a temporary dip rather than a long-term trend. As has happened in the past, buyers and sellers will return to the market once the uncertainty of the election fades.

In Conclusion

It’s essential to recognize that while election years can bring a brief slowdown in the housing market, this pause is usually temporary. Those sales are not gone for good. Data shows that home sales generally rise in the year following a Presidential election, and current forecasts indicate that 2025 will continue this trend. If you’re waiting for a clearer picture before taking action, rest assured that the market is expected to gain momentum in the coming months.

Together, let’s navigate these changes and find the perfect opportunity for you!