Do Presidential Elections Affect the Housing Market?

Learn how elections impact home sales, prices, mortgage rates, and whether it’s an excellent time to buy or sell a home.

Are you worried that the upcoming presidential elections might wrench the housing market?

If you’re considering buying or selling a home this year, you probably wonder if now’s the right time to act. Here’s the silver lining: history shows that elections rarely put a dent in the housing market. Are you curious to see how home sales, prices, and mortgage rates have held up over the past few decades during election years? Here’s the data and see for yourself: 

Home sales. Some buyers and sellers might decide to “wait it out” before purchasing during an election year. However, knowing that any slowdown is generally minor and temporary is essential. Historically, home sales bounce back and continue to rise the following year. Data shows that after nine of the last 11 presidential elections, home sales increased the year after the election.

“Presidential elections typically have minimal impact on the housing market.”

Home prices. You may be wondering if home prices drop during election years. The answer is different from the typical one. According to recent National Association of Realtors (NAR) data, home prices went up the following year after seven of the last eight presidential elections. The one exception was between 2008 and 2009, which coincided with the housing market crash. That was certainly an unusual year and not the norm.

Mortgage rates. Another critical factor likely on your mind is mortgage rates, which directly affect your monthly payments if you’re financing a home. Looking at the last 11 presidential elections, eight mortgage rates decreased from July to November. This trend suggests that election years may offer favorable mortgage rates for buyers.

Don’t let election jitters keep you from moving into the housing market. History tells us that homes keep selling, prices stay steady, and mortgage rates march on, no matter who’s on the ballot. 

So, whether you’re looking to buy or sell, now’s the time to act confidently because this year's real winner could be you and your next home. If you need help navigating real estate during election times, call me at (267) 242-9976, and let’s work together to find the best opportunities for you.