Election Day has just ended, and former President Donald Trump is again securing the seat. Housing is one of the big-ticket items for the 2024 presidential election, especially amid soaring home prices caused by a lack of supply in the market.
Now that the election is over, buyers who waited on the sidelines could be planning to reenter the market. But is it the right time to do so? Here are what experts say.
What Happens to the Housing Market After Presidential Elections?
The weeks before and after a presidential election often cause a temporary slowdown in home sales. In fact, research shows that completed transactions drop by up to 15% in November during election years. This is primarily due to uncertainty about potential policy changes and a general caution around making major financial decisions.
In addition, inventory levels also dip as sellers wait before making decisions on their properties, per Nationwide Mortgage Bankers. This dip in home sales is typically short-lived and would likely rebound the following year.
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As for home prices, they have increased every year following an election since at least 1978. The only exception to this was in 2008 when the housing market crashed, according to the Motley Fool.
Should Buyers Wait Instead?
Despite the factors outlined above, there is no one right answer. McKenzie Ryan of Douglas Elliman said buyers should do their research before making a decision. Some things to consider include mortgage rates, housing inventory levels, and any new policies that passed the ballot. It is, however, worth noting that changes are unlikely to roll out quickly.
Bankrate analyst Jeff Ostrowski recommends that buyers go through with their real estate activity if they can afford to purchase a home. He added that the elections are unlikely to have any significant effect on how the housing market will perform over the next several months. Furthermore, he noted that homeowners can refinance their properties for a lower interest rate later.
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