As the 2024 Presidential election approaches, many potential home buyers and sellers are understandably curious about the impact this major event might have on the housing market.
Historically, Presidential elections have had a modest and temporary impact on the housing market. Here’s an overview of how home sales, prices, and mortgage rates have typically behaved during election periods, and how Rippe Group can provide guidance and support throughout this time.
Home Sales
During election years, November often sees a slight dip in home sales due to the uncertainty surrounding the election. Ali Wolf, Chief Economist at Zonda, notes:
“Usually, home sales are unchanged compared to a non-election year with the exception being November. In an election year, November is slower than normal.”
This hesitation is temporary, and data from the Department of Housing and Urban Development (HUD) and the National Association of Realtors (NAR) shows that home sales generally rebound in December and continue to rise the following year. In fact, after nine of the last eleven Presidential elections, home sales increased the next year.
At Rippe Group, we provide the insights and data-driven advice you need to navigate these temporary slowdowns and make confident decisions.
Home Prices
Concerns about home prices during election years are common, but the data suggests that prices remain resilient. Ryan Lundquist, a residential appraiser and housing analyst, states:
“An election year doesn’t alter the price trend that is already happening in the market.”
Historically, home prices have continued to rise year-over-year, even during election years. According to NAR data, home prices increased the year after seven of the last eight Presidential elections. The only exception was during the housing market crash, which was an extraordinary circumstance.
At Rippe Group, our expertise ensures you can proceed with buying or selling your home with confidence, knowing that the market’s long-term trends are more influential than election-year jitters.
Mortgage Rates
Mortgage rates, a critical factor for buyers, often decrease leading up to Presidential elections. Data from Freddie Mac shows that in eight of the last eleven election years, mortgage rates fell from July to November. Current forecasts suggest this trend may continue, which could be beneficial for those looking to buy a home in the coming months.
Our team at Rippe Group is here to help you understand how changing mortgage rates affect your purchasing power and to secure the best possible financing options.
What This Means for You
The primary takeaway is that while Presidential elections can influence the housing market, these effects are typically minor and temporary. Lisa Sturtevant, Chief Economist at Bright MLS, summarizes:
“Historically, the housing market doesn’t tend to look very different in presidential election years compared to other years.”
For most buyers and sellers, the market remains robust and resilient. Rippe Group’s sophisticated, data-driven approach ensures you’re well-prepared to navigate the market, regardless of election outcomes.
Key takeaway
While election years can bring uncertainty, the housing market has historically shown strength and resilience. If you're considering buying or selling a home, Rippe Group is here to provide the guidance and support you need. Let's connect to ensure your real estate decisions are well-informed and strategically sound, election year or not.
