The 2024 Presidential Election and the Housing Market
As the 2024 Presidential election approaches, it’s natural for homebuyers, sellers, and industry professionals to wonder about the impact on real estate. Many have feelings of stress, excitement, or uncertainty, especially this year where so many twists and turns have already occurred in the presidential campaign and we still have a few months until the election day. In this blog, we’ll delve into what typically happens in the housing market during a presidential election year and how you can navigate it effectively.
Home Sales
Historically, presidential elections have a small, temporary impact on home sales. Ali Wolf, Chief Economist at Zonda, explains:
“Usually, home sales are unchanged compared to a non-election year with the exception being November. In an election year, November is slower than normal.”
This temporary slowdown is due to uncertainty and hesitation among buyers and sellers. However, home sales typically rebound in December and continue to rise in the following year. Data from the Department of Housing and Urban Development (HUD) and the National Association of Realtors (NAR) shows that home sales increased after nine of the last 11 presidential elections.
Home Prices
Do home prices drop during election years? Not typically. Ryan Lundquist, a residential appraiser and housing analyst, says:
“An election year doesn’t alter the price trend that is already happening in the market.”
Home prices are generally resilient and tend to rise year-over-year, regardless of elections. Data from NAR indicates that home prices increased in the year following seven of the last eight presidential elections.
Mortgage Rates
Mortgage rates, which affect your monthly payment, also show a trend. Data from Freddie Mac reveals that in eight of the last 11 presidential election years, mortgage rates decreased from July to November. Forecasts suggest that mortgage rates may ease slightly throughout the remainder of this year.
What This Means for You
While presidential elections have some impact on the housing market, these effects are usually small and temporary. Lisa Sturtevant, Chief Economist at Bright MLS, states:
“Historically, the housing market doesn’t tend to look very different in presidential election years compared to other years.”
For most buyers and sellers, elections don’t significantly alter their plans.
Bottom Line
If you’re considering selling your home, High Falls Sotheby’s International Realty is here to assist you. Our experienced team understands the nuances of the market, especially during pivotal tiThough it’s natural to feel uncertain during an election year, history shows the housing market remains strong and resilient. If you need help navigating the market, whether during an election year or not, High Falls Sotheby’s International Realty is ready to support you every step of the way. Let’s connect and make your home-selling journey a successful one.