There’s a school of thought that says that a Presidential election has an effect of the housing market, specifically interest rates. One reason might be that with housing being such an economic driver in our country, in behooves the incumbent to have a great economy to help them get reelected. Or, in the words of President Bill Clinton, “it’s the economy stupid!” I don’t think he was wrong then and I don’t think he’s wrong now. That said, there are a ton of additional factors at play in the market that may keep the effect of the election a bit lower. While it’s obvious that interest rates are wreaking havoc on buyers ability to purchase, lack of inventory is still keeping prices easing up, which is counter productive. As for whether elections make a difference in the market, our friends at KCM have done a deeper dive to see what has happened in the last several decades. Enjoy!
How Do Presidential Elections Impact the Housing Market?
Some Highlights
- Are you wondering if the upcoming election will have an impact on the housing market? Here’s what history tells us you need to know if you’re considering a move.
- Data shows home sales slow in November but quickly bounce back and rise the following year. Prices usually keep climbing. And mortgage rates typically come down slightly.
- Presidential elections have only a small and temporary impact on the housing market. If you have questions, let’s connect.