Do Elections Impact the Housing Market?

As we approach the final quarter of 2024, the upcoming Presidential Election is on many people's minds, especially regarding its impact on the housing market. Is it a real concern or just noise?

Typically, homes for sale and home sales peak in May-June in Texas, according to real estate appraisers and consultants. During election years, there’s usually no significant change in the housing market, except in November. Buyer and seller activity tends to slow down then, but it picks up again in December. People often hesitate to make big decisions during an election month. Interestingly, after 9 of the last 11 Presidential elections, home sales increased, based on data from Housing and Urban Development (HUD) and National Association of Realtors (NAR). The exceptions were in 1981 and 1989.

Election years also don’t disrupt home price trends. In fact, home prices rose after 7 of the last 8 Presidential elections, according to NAR data. The exception was in 2009, during the Great Financial Crisis.

Additionally, interest rates often decline in election years, as shown by Freddie Mac data. This year, mortgage rates are at their lowest in 18 months and are expected to continue declining into 2025.

As the election approaches, there may be talk of the housing market being negatively impacted. However, history shows that any volatility is usually small and temporary.


Bottom Line

While it’s natural to feel a bit uncertain during an election year, history shows the housing market remains strong and resilient. If you have questions, reach out!