Understanding the Impact of Presidential Elections on the Housing Market
As the 2024 presidential election approaches, many are curious about its potential effects on the housing market. Historically, while elections introduce a degree of uncertainty, their impact on real estate tends to be minimal and short-lived.
Seasonal Trends and Election Years
Typically, home sales experience a slight decline in the fall, a pattern that can be slightly more pronounced during election years. This temporary slowdown is often due to buyers and sellers adopting a cautious approach amid political uncertainty. However, data indicates that this dip is short-term, with sales rebounding in the months following the election.
Home Prices Remain Resilient
Concerns about potential declines in home prices during election years are generally unfounded. Historical data reveals that home prices have consistently risen in the year following seven of the last eight presidential elections. The sole exception was during the 2008 housing crisis, a period marked by unique economic challenges.
Mortgage Rates and Election Cycles
Mortgage rates are influenced by a variety of factors, including economic conditions and monetary policy. Interestingly, in eight of the last eleven presidential election years, mortgage rates decreased between July and November. This trend suggests that elections do not necessarily lead to higher borrowing costs for homebuyers.
Key Takeaways
While presidential elections can introduce a brief period of uncertainty in the housing market, their overall impact is typically minor and temporary. Home prices tend to continue their upward trajectory, and mortgage rates often remain stable or even decrease during election periods.
At Corken + Company Real Estate Group, we understand that navigating the housing market during election seasons can be challenging. Our team of experts is here to provide you with the guidance and insights needed to make informed decisions, ensuring your real estate goals are met with confidence.
Ready to explore your real estate options? Contact Corken + Company Real Estate Group today to speak with one of our experienced agents. We’re here to help you navigate the market with ease.
