Will the Election Affect the Housing Market?
Presidential elections don’t just affect our country’s leadership. They can impact many aspects of our lives – including the housing market. Analysts will make many predictions over the coming weeks about how the election results will affect our economy. But one thing is for certain – the housing market will remain strong. These are the reasons we believe that confidence in the market will stay high in the coming weeks and months.
Interest rates remain at all-time lows
Interest rates on home loans continue to set records, and buyers can still score great deals on mortgages. Interest rates have a huge influence on the housing market. With rates this low, it’s unlikely that the election will impact whether or not Americans apply for home loans. In fact, Freddie Mac recently forecasted that mortgage interest rates would continue to stay low through the coming year.
Demand is still huge
Unlike almost every other sector of the economy, the housing market has surged as a result of the pandemic. There is still much pent-up demand for housing. Buyer demand is high across the country. Unfortunately, inventory of existing homes is still struggling to keep up with demand. This is another reason that it’s unlikely that the housing market will see much impact from the election. Because of the pandemic, Americans are looking for more space and many of them are entering the housing market for the first time or hoping to upgrade. This is especially true for Millennials, who were slow to enter the market until recently.
Prices are still climbing
Because of the lack of existing homes for sale, prices for real estate continue to climb. Many experts believe that home prices will continue to increase over the coming months, regardless of election results. With mortgage rates at all-time lows, homebuyers can afford to buy a more expensive house than they would otherwise be able to. And with fierce competition among buyers, sellers are finding that their homes are the subject of bidding wars, driving homes prices even higher.
History is on our side
While we can make predictions about the market by looking at current conditions, we can also look to the past to see how presidential elections have affected the housing market. According to a recent report by the Meyers Research Group, demand for homes does not decrease in a presidential election year. When examining the four-year cycle, they discovered that election years are actually the best years of the cycle. And it’s always important to remember that even though the housing market may fluctuate up and down in the short-term, real estate always increases in value over the long term. Even if this presidential election were to impact the housing market, the affects would be short term.
Should you let the election derail your plans?
Whether you’re buying or selling a home, you shouldn’t let the results of the presidential election derail your plans. Now is a great time to buy or sell a home, and experts forecast that the housing market will continue to remain strong in the coming year.
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