Photo by Parker Johnson on Unsplash
In the midst of a contentious election cycle, it's natural to wonder how the political landscape might impact the housing market. While elections can stir uncertainty, it's important to remember that housing market trends are driven by a complex interplay of economic factors, and past performance suggests that election years typically don't cause major disruptions. Unlike the stock market, any changes to the housing market will typically take longer to manifest.
Interest Rate Fluctuations
For home buyers, a primary concern is often affordability. Interest rates and overall economic health are significant factors influencing affordability. The Federal Reserve, not the occupant of the Oval Office, has the primary responsibility for setting interest rates. In the longer term, interest rates can be influenced by election outcomes, as new administrations may implement different economic policies. For instance, if a candidate proposes measures to stimulate the economy, interest rates might rise. Conversely, if there's a focus on economic stability, rates could remain low. It's wise to focus on your long-term financial goals and secure a mortgage that aligns with your budget, regardless of the election outcome.
Regulatory Changes
Elections can lead to changes in housing regulations, including tax laws, lending standards, and housing affordability programs. These changes can impact buying and selling decisions. Even a candidate’s stand on immigration could impact the demand for housing, which then impacts price (supply and demand).
Selling your Home
Home sellers should also maintain a long-term perspective. While elections can create short-term psychological shifts, housing markets are cyclical by nature. Market values are primarily influenced by factors like inventory levels, job growth, and overall consumer confidence. By ensuring your home is priced competitively and in good condition, you'll be well-positioned to attract qualified buyers throughout the election cycle.
In conclusion, national elections can be captivating events, but they shouldn't overshadow the fundamentals of the housing market. By keeping your focus on your individual financial goals and working with a qualified real estate professional, you can make informed decisions about buying or selling a home, regardless of the political climate.
If you have any questions about buying or selling a home in today's market, please don't hesitate to contact me. I'm here to help you navigate the process with confidence.
Chris McCarron wrote this article with the help of Bard and ChatGPT but this article was the original inspiration.
