What An Election Year Means For The Palm Harbor Housing Market

Every election cycle, people wonder: Is now the right time to buy a house, or should I wait until after the election? It’s a good question, but the answer isn’t as simple as you might think. While elections can stir up uncertainty, history shows their impact on the housing market is usually pretty small and short-lived. So, let’s break it down.

Does an Election Really Shake Up the Housing Market?

The data tells us that presidential elections don’t cause much of a disruption in the housing market. In fact, home sales tend to stay pretty steady compared to non-election years, with one key exception: November. November tends to be slower in election years, likely because people are more focused on the political drama than on house hunting. But here’s the thing: after 9 of the last 11 elections, home sales picked up the following year. So, even if November’s slow, things usually bounce back quickly.

What About Home Prices?

If you’re worried that prices will drop or spike due to the election, you can relax a bit. The market usually follows whatever price trend is already happening, regardless of politics. In fact, home prices went up after 7 of the last 8 elections, with 2009 being the exception, and that had more to do with the Great Recession than the election itself. So, if prices are rising now, they’ll probably keep rising whether or not you wait.

Will Interest Rates Change Before the Election?

Here’s some good news: interest rates tend to ease leading up to elections. In 8 of the last 11 presidential election years, mortgage rates actually dropped between July and November. And the forecast for 2024? Many experts are predicting that rates will continue to come down throughout the year. So, if you’ve been waiting for better rates, this could be your chance to lock in a lower one before the election.

What’s the Bottom Line?

At the end of the day, whether you should buy a home now or wait until after the election comes down to your personal situation. Are you financially ready? Have you found a place you love? If so, don’t let the election hold you back. Sure, the market might slow down a bit in November, but the overall impact of an election on housing tends to be small and short-term.

So, keep an eye on interest rates and local market trends, but don’t stress too much about the election. If the right house comes along and you’re ready to make a move, there’s no reason to wait! Schedule your strategy call today.