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Whether you've bought and sold many properties or are a first-time home buyer looking for a mortgage, you may wonder how the upcoming election will affect the housing market.
While it's true that elections have consequences, some appear to be more dramatic than others.
Historically, potential home buyers have become a bit nervous about making a decision as significant as a home purchase during election time. As a result, home sales slow. So, despite low inventory and lightning-fast sales times in some regions of the country, home sellers should not be too concerned if the process seems to slow to crawl. It's the norm around this time.
Data from the Department of Housing and Urban Development (HUD) and the National Association of Realtors® (NAR) indicates that home sales have increased the year after nine of the last 11 presidential elections. Since 1978, the only two times home sales did not increase the year following an election were in 1981 and 1989.
Typically, election years do not disrupt home prices, and the market remains stable. That's especially true when inventory remains stubbornly low. Historical data indicates that home prices tend to increase year over year, including years following an election.
In fact, according to the NAR, home prices have risen every year after an election with the exception of 2008, during the housing market crash. Sellers concerned about their property values tanking can probably breathe easy.