How Presidential Elections Impact the Housing Market

With every presidential election, many people wonder how the results will affect the housing market. It's natural to feel uncertain during such times, but it's essential to separate fact from fiction. This article breaks down the real impact elections have on real estate and why you shouldn't let politics dictate your real estate decisions.

Do Elections Really Impact the Housing Market?

While it’s true that election years can bring about uncertainty, historical data shows that presidential elections have minimal impact on the housing market's overall performance. The key factors that influence the market are interest rates, inventory levels, and buyer demand—none of which are directly tied to election results.

What the Data Says

Election years bring uncertainty, and when people are uncertain they usually don’t do anything. This is why we see the number of home sales drop by about 15% right before an election. But this slowdown is temporary and home sales bounce right back and continue to rise the following year.

Data actually shows that after 9 of the last 11 Presidential elections, home sales went up the year after the election. So it’s about to get a lot more competitive next year with more buyers looking for homes.

Prices also went up after 7 of the last 8 elections, with the outlier being in 2009 during the great financial crisis. After the last 8 elections, home prices went up the following year on average 6.24% Regardless of who won the election.

Should I wait to buy a house in South Florida until after the election?

If you're considering buying or selling a home, it’s important to focus on your personal goals rather than the political climate. Timing the market based on an election can lead to missed opportunities. Instead, consider factors like your financial situation, local market conditions, and long-term plans when making real estate decisions.

Presidential elections may cause a temporary pause for some, but they don't have a significant impact on the long-term trajectory of the housing market. Whether you're looking to buy, sell, or simply explore your options, now is as good a time as any to make informed decisions that suit your needs.

If you have any questions or need guidance on navigating the real estate market, feel free to reach out. Let’s make a plan that works for you, regardless of the political landscape!