Do Presidential Elections Influence the Real Estate Market?
“Historically, the housing market doesn’t tend to look very different in presidential election years compared to other years.”
Curious about how a presidential election might impact the real estate market? While many buyers and sellers wonder if elections slow the housing market, historical data shows that presidential elections typically have only temporary effects on real estate trends. Understanding these patterns can help you make informed decisions if you’re thinking about buying or selling a home during an election year.
Home Sales Went Up After Nine of the Last Eleven Presidential Elections
During most presidential elections, real estate activity experiences a minor slowdown, especially around November when election-related uncertainties are at their peak. However, history shows that home sales tend to bounce back quickly after the election. In fact, following nine of the last eleven presidential elections, real estate sales increased the year after the election, signaling a strong rebound for homeowners and buyers alike.
Mortgage Rates Decreased Leading Up to Eight of the Last 11 Presidential Elections
Mortgage rates often fluctuate leading up to a presidential election, usually decreasing slightly as the election approaches. Over the past eleven elections, rates have fallen in eight of those years from July through November. Lower mortgage rates during an election year can create a favorable environment for real estate buyers looking to take advantage of temporary opportunities.
Home Prices Went Up After Seven of the Last Eight Presidential Elections
Even during presidential elections, home prices tend to follow the general market trend rather than being drastically affected by election outcomes. After seven of the last eight presidential elections, real estate prices continued to rise, proving that elections have a minimal long-term impact on the value of homes. Sellers and buyers can take comfort in knowing that real estate investments remain stable despite the election cycle.
Elections and Real Estate: What You Should Know
It’s important to remember that while elections generate attention and discussion, the real estate market is influenced more by local supply, demand, and economic factors than by political events. Whether you’re buying, selling, or refinancing, your local real estate market continues to move with its own momentum, even in a presidential election year.
If you’re wondering how the upcoming election could affect your real estate plans, connect with a trusted advisor who understands both the local market and election-year trends in housing. Staying informed about election cycles can help you time your real estate decisions effectively, ensuring you make the best move for your financial goals.
Sources: Bankrate, HUD, National Association of Realtors (NAR), Freddie Mac
