How the 2024 Presidential Election Could Impact Your Home Buying or Selling Decisions

Hey there, future homeowners and potential sellers! 🎉 The 2024 Presidential election is just around the corner, and you might be wondering if this political rollercoaster has any twists and turns for the housing market. Spoiler alert: the effects are usually minor and short-lived, but let’s dive into the details!

Home Sales: A Slight Dip in November, But No Need to Panic

First, let’s talk about home sales. Historically, November sees a tiny dip in real estate activity during election years. Ali Wolf, Chief Economist at Zonda, sums it up nicely:

“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.”

Why the slowdown? Simple! People get a bit jittery about making hefty decisions when the political climate is heating up. But don’t worry too much—the market usually rebounds in December and continues on an upward trend the following year. 📈

Data from the Department of Housing and Urban Development (HUD) and the National Association of Realtors (NAR) reveals that after nine of the last 11 election years, home sales increased. Check out this cool trend: the years right after elections have seen a rise in home sales, bouncing back like a pogo stick!

Home Prices: Steady as She Goes

What about home prices? Do they take a dip during election years? Not really! According to Ryan Lundquist, a savvy residential appraiser and housing analyst:

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

In other words, home prices are like the sturdy tortoise in Aesop’s fable—they keep going slow and steady, regardless of the election chaos. Over the past eight election years, home prices have risen in seven instances. The housing market crash was a rare exception, so don't let that orange bar rattle you!

Mortgage Rates: Could This Be a Silver Lining?

Now, let’s touch on mortgage rates because these are crucial for your monthly payments. Interestingly, in the last 11 Presidential election years, mortgage rates dropped from July to November in eight of those years. Freddie Mac’s data shows us this promising pattern.

Most experts predict that mortgage rates will continue to ease throughout this year. So, if you’re on the hunt for a new home soon, lower rates could mean a sweeter deal for your wallet. 💸

The Big Takeaway

Alright, what’s the verdict? Presidential elections do shake things up a teeny bit, but generally, the real estate market remains as resilient as ever. Lisa Sturtevant, Chief Economist at Bright MLS, puts it best:

“Historically, the housing market doesn’t tend to look very different in presidential election years compared to other years.”

For the majority of buyers and sellers, elections won't throw a wrench in your real estate plans. So whether you’re buying or selling, take a deep breath and keep calm and carry on!

Bottom Line

It’s perfectly natural to feel a touch of uncertainty during an election year. But relax! The housing market is a sturdy ship navigating through the political waves. If you’ve got questions, need some guidance, or someone to hold your hand through these elections, give us a call.

Here’s to happy buying and selling, election year or not! 🏡✨