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With the next presidential election approaching fast, the campaign rhetoric isn’t the only thing heating up. Consumers across the country are feeling uncertain and overwhelmed, wondering whether it makes sense to buy or sell a home now or wait until after the election.
It’s a tense, emotional time for many. And while some might welcome the distraction a home purchase or sale would give them from all the pre-election drama, others are inclined to wait and see how the outcome could change their financial situation—or where they want to live.
You, as a real estate professional, need to know how to have these conversations with people:
To shed light on how the housing market historically has reacted to election years
To clarify today’s market conditions and what we can expect in the months to come
To break down the benefits and risks involved in buying/selling now vs after the election
The more data and experience you can bring to bear to guide consumers and empower them to make smart decisions for themselves, the better off they’ll be in the long run, and the more likely they are to trust you as their guide when they’re ready to buy or sell.
Whoever wins the election, that’s one thing that won’t change.
Housing Markets in Election Years Past
So, how has the U.S. housing market reacted in election years past? Historically, the impact has been temporary but significant enough to deserve a mention in your conversations with buyers and homeowners in the weeks and months ahead.
Help your clients make informed, proactive decisions, and they’ll be better off for years to come. And so will your business.
To shed light on how the housing market has reacted to presidential elections—in the months leading up to November as well as the months that follow—we’ve rounded up data from top industry sources including:
U.S. Department of Housing and Urban Development (HUD)
National Association of Realtors (NAR)
Realtor.com
Bankrate
Read on for the big reveal.
Home Prices
Home prices have grown faster during past election years compared to non-election years. That’s according to a report on Bankrate, which draws from its analysis of Case-Shiller data.
In the nine election years we’ve had since 1987, home prices have increased an average 4.84% compared to an average 4.44% for non-election years. It’s a modest increase but one worth pointing out, if only to illustrate that home prices are unlikely to suffer during an election year.
It’s even tempting to think elections are a boon to home price appreciation. A closer look, however, shows the reality is more nuanced.
Home price appreciation by year from 1987 to 2023 (election years in bold font):
1987: 7.22%
1988: 7.23%
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