As the upcoming presidential election approaches, many wonder how it might influence the housing market. The answer lies in our history—our historical data can offer insights into what we might expect to see in the next few months. Today, I will explain the key trends observed during election years and the years that follow:
• Home sales. Generally, we often see a slight slowdown in home sales during November of an election year. However, this trend tends to be temporary. In 9 out of the last 11 presidential elections, there has been an uptick in sales in the year following the election. This means that while there might be slightly fewer sales nationwide during the election year, the market usually rebounds strongly afterward.
• Mortgage rates often decrease in the months before an election, typically from July through November. This trend has held in 8 out of the last 11 presidential elections, offering potential buyers an opportunity to lock in lower rates during this period.
• Home prices usually increase the year after an election. This trend was observed in seven out of the last eight presidential elections. The only exception was in 2008, during the housing market crash, which led to a decline in home prices in 2009.
While these statistics are interesting and somewhat predictable, it’s essential to note that they are typically temporary changes. Markets generally don’t favor uncertainty, but you shouldn’t expect drastic long-term shifts solely due to the election. Elections may bring uncertainty, but one thing is certain: this season brings opportunities for both buyers and sellers.
If you have any questions or would like to discuss how the upcoming election might affect your home-buying or selling plans, I’d love to chat. Our team is always here to provide expert advice and help you navigate the market with confidence. Just call 857-210-9925 or email lou@c21revolution.com. I look forward to talking with you soon!
