As we head into an election year, many buyers and sellers are wondering how the upcoming presidential election will impact the housing market. The truth is, presidential elections often cause a temporary slowdown in home sales, but it’s not all doom and gloom. Let’s break down what’s happening, why it happens, and what it means for you as a potential buyer or seller in the real estate market.
Why Home Sales Slow Down in the Fall
Fall is traditionally a slower season for the housing market, regardless of whether it’s an election year. As the weather cools and people start to focus on the upcoming holidays, fewer buyers and sellers are actively making moves. Families are preparing for the school year, and many people prefer to settle into a home before the winter months. This natural seasonal dip can make it feel like the housing market is in a bit of a lull.
The Bigger Dip in Election Years
In election years, however, this natural seasonal slowdown is often amplified. Why? In the months leading up to Election Day, there’s typically a sense of uncertainty that leads people to hit the pause button on major decisions, including buying or selling a home. It’s not just about the election results—it’s about the political and economic climate that often creates hesitation. Buyers may be wary of how policy changes will impact the economy, interest rates, and home affordability, while sellers may hold off, unsure of the best time to list.
The Good News: It’s Temporary, Not Permanent
Here’s where the good news comes in: These sales are not lost; they’re just delayed. If history has taught us anything, it’s that the housing market tends to bounce back once the election is over and the dust settles. In fact, home sales usually see an uptick the following year as people who put off buying or selling in the months leading up to the election return to the market.
Current expert forecasts for 2025 are in line with this trend. Total home sales are expected to rise next year, meaning there will likely be more homes sold in 2025 compared to 2024—and more homes sold this year compared to last year. This indicates that while sales may be slower in the short term due to election-related uncertainty, they are not lost opportunities. They’re simply deferred.
What This Means for Buyers and Sellers Right Now
If you’re thinking about buying or selling during the election year, it’s important to understand that a slight slowdown may be expected, particularly in the months leading up to Election Day. But that doesn’t mean you should put your plans on hold forever.
For buyers, this could be a good opportunity to find less competition in the market, as fewer people are actively looking to buy during the fall. If you’re willing to navigate the temporary dip, you might be able to negotiate better deals with sellers who are more motivated to close before the end of the year.
For sellers, you may not see the same level of buyer activity right now, but that doesn’t mean you should wait indefinitely. If you’re in a position to sell, it’s still a good time, and when the market rebounds next year, there will likely be even more demand for homes. It’s just about understanding that there may be a slight dip in activity during these election months.
Looking Ahead: A Brighter Outlook for 2025
The most important thing to remember is that the current slowdown is a temporary, election-related trend. The housing market is forecast to gain momentum in 2025, with more homes expected to sell than in 2024. So whether you’re planning to buy or sell this year or next, keep in mind that real estate is a long-term investment. Even if the market feels sluggish now, history shows that it will bounce back with vigor once the election is over and the new year begins.
Need Help Navigating the Market?
Whether you’re thinking about buying, selling, or just want to understand how these trends might affect your specific situation, I’m here to help. Let’s talk about your goals and create a strategy that works best for you—whether now or in the months ahead.
Remember, this temporary dip is just that—temporary. The housing market is on track to bounce back strong in 2025, so if you’re ready to make a move, now is a great time to start planning.
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