Elections are a pivotal time in any country, and their impact extends beyond politics, influencing various aspects of the economy, including the housing market. A recent study by the National Association of Realtors (NAR), highlighted by Keeping Current Matters, sheds light on how elections have historically affected home sales, prices, and mortgage rates.
Historical Trends and Patterns
According to the NAR study, history shows that elections have a small and temporary impact on the housing market. This insight is crucial for both homebuyers and sellers who might be concerned about the potential volatility brought by an election year. The study’s findings provide reassurance, indicating that any fluctuations are typically short-lived.
Home Sales Post-Election
One of the notable highlights from the study is that in 9 of the last 11 elections, home sales increased in the year following the election. This trend suggests a pattern where the market stabilizes and even grows once the uncertainty of the election has passed. It reflects the resilience of the housing market and its ability to rebound quickly from any election-induced hesitation.
Home Prices Trends
Home prices have also shown a positive trajectory in relation to elections. In 7 of the last 8 elections, home prices increased in the subsequent year. This consistent rise in home prices post-election underscores a robust demand for housing and the market’s strength, which continues despite the political changes.
Mortgage Rates Dynamics
Mortgage rates have also been influenced by elections. The study found that in 8 of the last 11 elections, there was a decrease in mortgage rates in the year following the election. Lower mortgage rates are beneficial for homebuyers, making home financing more affordable and stimulating market activity.
Conclusion of How Elections Affect the Housing Market
The findings from the NAR study, as reported by Keeping Current Matters, provide valuable insights into how elections affect the housing market. While there might be a temporary impact during the election period, historical data shows a pattern of recovery and growth in home sales, prices, and a decrease in mortgage rates post-election. For those involved in the housing market, these trends offer a sense of stability and predictability in an otherwise uncertain time.
Understanding these patterns can help buyers, sellers, and real estate professionals navigate the housing market with greater confidence during election years.
Thanks for reading,
Chris
