The housing market has been tumultuous over the past months, with home prices rising and mortgage rates fluctuating. Sales have also been sluggish as more buyers are pushed to the sidelines by soaring prices. Fortunately, there may be relief in sight, one expert predicted.
Ryan Serhant, a real estate broker known for Million Dollar Listing, recently spoke on Fox Business where he said he is optimistic about where the housing market is headed in 2025 following the upcoming November elections.
"I think people are waiting to see what happens in November, and that will take us into a roaring 2025," he said.
Serhant also predicted that the housing market could have more "liquidity" once mortgage rates dip to at least 5%. For perspective, the contract rate for the 30-year term was 6.12% while the rate for the 15-year term was 5.25% in the week ending Oct. 3, per data from Freddie Mac's Primary Mortgage Market Survey.
How Do Elections Impact the Housing Market?
During election years, political uncertainty often leads to a slowdown in the housing market. Buyers and sellers may delay transactions while waiting for future policies and economic conditions that could either make homebuying more affordable or expensive.
Additionally, interest rates can also change as a result of the new economic policies of the incoming administration. Lower overall inflation and interest rates could make homes more affordable for Americans, inspiring an improved housing market.
That said, it is essential to note that elections introduce short-term volatility to the housing market. Their overall long-term impact is limited. Economic factors still largely influence the housing market, including interest rates, supply and demand, and consumer confidence.
What Other Experts Say
Not all experts agree with Serhant's prediction, especially as mortgage rates for the 30-year fixed term remain in the 6% range. According to Newsweek, buyers are still waiting on the sidelines due to higher monthly mortgage payments.
Furthermore, the median wage of Americans is still struggling to keep up with the cost of a home for sale. In the second quarter of 2024, the median weekly salary of an employee in the US was $1,143. This equates to $59,436 per year. In comparison, the median sale price of a home in August was $432,849.
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