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Do elections impact the Housing Market?

Friday, October 25, 2024   /   by Vickie Davies

Do elections impact the Housing Market?


YES…ABSOLUTELY…The list of things that can impact the housing market is long and sometimes exhausting, much like the campaign politics in a presidential election year. For as long as I have been a REALTOR®, the negative impact of a Presidential Election year has been a fact of life in real estate. Because the news surrounding the candidates and what is happening along the campaign trails affects everyone differently, it is only natural that some buyers and sellers may be wondering how elections might impact their plans to buy or sell a home right now and in the coming months.


Data from the Department of Housing and Urban Development and the National Association of REALTORS® show that home sales do slow down in the months leading up to Election Day. But the good news is, sales do not slow down for an extended period of time. Once the election is over home sales tend to pick back up. Research showed that for 9 of the last 11 presidential elections home sales increased the following year regardless of which side won or lost. The two years sales decreased following an election where in the 1980s. 


Another huge factor on home buyers' minds is where mortgage rates are going. The mortgage market has been nothing short of a roller coaster for the last four years. Rates went unbelievably low and then doubled seemingly overnight to levels we haven't seen in decades. Currently many buyers and sellers are holding back on plans and watching to see where mortgage rates are truly headed. 


Reviewing data shared by Freddie Mac, a large mortgage-backing entity in America, mortgage rates decreased from July to November in 8 of the last 11 election years. 


This year has fallen in line with the historical research trends. Mortgage rates have decreased since the beginning of September. Many mortgage analysts are reporting they expect rates to continue to decrease in the near future. (Though no one can ever 100% accurately forecast where mortgage rates will go). 


All of these numbers are interesting and helpful to get some insight into how elections impact the housing market. But what is truly the best method for determining what the market is doing and how it will impact your personal decisions is to talk with a local Granbury REALTOR®. 


So, give us a call and let’s talk about what is going on with homes in specific neighborhoods you are interested in purchasing a home, or how conditions and inventories in your neighborhood will impact the sale of your personal home.


If you are ready to buy or sell a home in Granbury and would like to talk about what that could look like, contact us anytime at 817-219-0456.