Polls & Properties: Can the Presidential Election Swing the Housing Market?

TL;DR Quick Notes: Election Year & The Housing Market

• Sales: A tiny dip leading up to Election Day, but they bounce back quickly afterward!

• Prices: Stay the course—election years don’t usually shake up price trends.

• Mortgage Rates: Often drop before the election, which could boost your buying power.

• Bottom Line: The housing market keeps moving, so no need to pause your plans!

What Does the Upcoming Election Mean for the Housing Market? Let’s Break It Down!

As the Presidential election approaches, it’s totally natural to start wondering how it might affect the housing market. You’re not alone if you’ve got questions—buying or selling a home is a big deal, and a little uncertainty can easily lead to worry. But here’s the good news: Presidential elections usually have only a small and temporary impact on real estate. So, let’s dive into the details so you can feel confident about your next move!

Home Sales: A Brief Slowdown, Then a Bounce Back

In the month leading up to Election Day, it’s pretty common to see a slight dip in home sales. Why? Some folks might hit pause, preferring to wait until after the election to make any big decisions. But here’s the thing—this slowdown is usually minor and doesn’t last long. History shows that home sales typically bounce back quickly and continue to rise the following year. In fact, after 9 of the last 11 Presidential elections, home sales increased in the year that followed. So, no need to worry—if you’re planning to buy or sell, the market won’t leave you hanging for long!

Home Prices: Staying on Track

Worried about home prices taking a nosedive during an election year? Breathe easy! Elections don’t usually disrupt the existing price trends in the market. Home prices generally keep moving along their usual path, regardless of who’s running for office. The data backs it up—after 7 of the last 8 Presidential elections, home prices went up the next year. The only exception was the 2008-2009 crash, but that was a rare situation. So, expect your local market’s pricing trends to stay on course.

Mortgage Rates: A Potential Drop

Now, let’s talk about mortgage rates—something that’s always on the minds of buyers and sellers. The pattern over the last 11 Presidential election years shows that mortgage rates tend to decrease from July to November. And guess what? We’re already seeing this happen in 2024. If this trend continues (and experts think it will), it could be great news for anyone looking to buy a home soon. Lower rates mean better purchasing power, so keep an eye on those numbers!

What’s the Bottom Line?

While it’s normal to feel a bit uncertain during an election year, there’s no need to hit the brakes on your real estate plans. The housing market has proven to be strong and resilient, even during election cycles. 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.” So, if you’re ready to make a move, don’t let the election hold you back—real estate is still rolling right along!

Ready to navigate the market during this election season? Let’s connect and make it happen!