With the 2024 Presidential election on the horizon, you might be wondering how it will affect the housing market. Let’s dive in to explore the potential opportunities and trends.

The Election Year Slowdown

Home sales typically see a slight dip in the fall due to seasonal trends, as families settle into school routines and anticipate the holiday season. However, BTIG data shows a more notable slowdown in election years just before Election Day, driven by uncertainty. Buyers and sellers often hesitate, delaying decisions until election outcomes clarify potential impacts on economic policies and the housing market. This is especially evident as political changes can influence interest rates and property values.

A Redfin survey reveals that 23% of first-time homebuyers prefer to wait until post-election for purchasing, largely due to uncertainty over policy shifts affecting mortgage rates, tax incentives, and economic conditions. As a result, the pre-election period often sees a pause in usual housing market activities.

For those navigating these market dynamics, working with a knowledgeable team can make all the difference. Consider consulting with experienced professionals to navigate these complexities seamlessly, ensuring you make informed decisions and optimize your real estate opportunities.

Post-Election Resurgence in Home Sales

The encouraging news is that these delayed sales aren’t gone; they’re just on hold. Historically, home sales rebound after an election, with an 82% increase observed in the following year. This trend often arises from the uncertainties elections bring. Once the election concludes, clarity about future policies and market conditions boosts confidence among buyers and sellers. This renewed confidence typically leads to increased home sales as people feel more secure in making significant financial decisions, such as purchasing a home.

Looking ahead to 2025, if past trends continue, we can anticipate a rise in home sales. Current forecasts support this expectation, predicting 5.2 million homes sold in 2025, up from 4.6 million this year. Although the market might seem sluggish now, it’s a temporary pause rather than a long-term trend. Once the election period ends, buyers and sellers are likely to re-engage.

Bottom Line

Election years might momentarily slow down the housing market, but this is typically short-lived. Sales usually rebound the following year. If you’re holding off for a clearer market view, rest assured that activity is likely to increase after the election. Consider working with our experienced team to navigate these changes smoothly and effectively. We’re here to ensure you achieve the best outcomes, whether buying or selling your home. Let’s plan your next steps—reach out for a consultation today!