How the Housing Market Typically Adjusts After an Election
The presidential election cycle can significantly impact the housing market, often creating notable shifts. While predicting future trends with certainty is challenging, historical data offers valuable insights into potential post-election market changes. Understanding these patterns can help buyers, sellers, and investors make more informed decisions, anticipating how the market might evolve in the wake of the election.
Historical Trends
Mortgage Rates: Historically, mortgage rates have tended to decrease after presidential elections. This trend can stimulate buyer activity and drive up home prices.
Home Sales: There's often a slowdown in home sales during the election period, particularly in October and November. However, post-election, sales typically rebound and increase.
Home Prices: While there have been exceptions, home prices have generally increased in the years following a presidential election.
Understanding the Exceptions
It's essential to note that the 2009 housing market crash was an anomaly due to the global economic crisis and not directly related to the election outcome. Additionally, while mortgage rates and home prices have historically moved in certain directions post-election, these trends aren't guaranteed.
What This Means for Buyers and Sellers
Buyers: The post-election period often presents an opportunity to benefit from potentially lower mortgage rates. However, increased buyer competition can lead to higher home prices. Acting swiftly can be advantageous.
Sellers: A post-election market typically favors sellers with increased buyer activity and potential price appreciation. Preparing your home for sale and being ready to list can maximize your chances of a successful sale.
Bottom Line
While past performance isn't indicative of future results, understanding historical trends can help you make informed decisions about buying or selling a home. By staying informed and working with a knowledgeable real estate agent, you can navigate the post-election market with confidence.