POST ELECTION HOME PRICES

According to Ali Wolf, Chief Economist at Zonda:

"Usually, home sales are unchanged compared to a non-election year, with November being the only exception where we typically see a slight dip in sales during an election year."

The slowdown in sales is temporary. History shows that home sales typically bounce back in December and continue to rise in the following year. In fact, after 9 of the last 11 elections, home sales increased the year after.

Home Prices Don’t Fall—They Usually Rise

Will an election impact home prices? Not likely. Historically, home prices continue to rise during election years and beyond.

Ryan Lundquist, a respected residential appraiser and housing analyst, emphasizes:

"An election year doesn’t alter the price trend that’s already happening in the market."

After 7 of the last 8 elections, home prices rose the following year. The only exception was during the housing crash, which was an extraordinary event. So, if your clients are worried about price drops, remind them that home values have shown resilience through most elections.

Mortgage Rates Are Expected to Trend Down

Mortgage rates are closely tied to the economy, which in turn is influenced by political events like presidential elections. Historically, mortgage rates tend to decline in years following an election. Data from Freddie Mac shows that in 7 of the last 10 elections, rates dropped in years following the election. One could argue that the years following the 2020 election were unprecedented due to the impacts caused by COVID on the economy.