By Tamra Haase
Campaign ads have been airing. We are just weeks away from the election. While some presidential hopefuls are laying out their policies, the impact of the electoral process on residential real estate hasn’t yet fully unfolded. Across the nation, the market still seems set on its normal trajectory. In January, nationwide inventory continued to decline, while median listing price climbed to nearly $300,000.
Financial forecasters love election years. How will the stock market do? Should you buy or sell? Real Estate forecasters are no different. What is the housing market like? Are mortgage rates going to rise or fall?
As a consumer, it can be confusing. Luckily for you, I have some insights summarizing what experts say about buying a house in an election year. Mortgage rates remain incredibly low. Election years don’t really matter. Mortgage rates have been on a steady decline since 1981. The period when rates were in the late 1970’s through early 1980s were a time of high inflation, high unemployment and a stagnant economy. None of that applies today.
If you plan to stay on the sidelines until after November 4 to get a mortgage, you might want to reconsider. With today’s favorable economic outlook when it comes to mortgage rates, unemployment and consumer confidence, the upcoming presidential election might do little to impede first time buyers or those shopping for lower to median homes. Typically, the sell prices do not go down during elections, sometimes this will even increase prices due to the lack of inventory for the buyers, making it a sellers’ market with sellers’ getting full list price and many multiple offers.
If you are selling in this 2020 election year, you may see less foot traffic for a couple weeks as people are preparing for election and the holidays ahead, but do not let that scare you, it will historically rebound days after the election when the dust settles. If you are a buyer during this 2020 election and the inventory seems like slim pickings, do not panic. With my 33 years of experience, I tend to see more homes go on the market soon after elections. Sellers are now more comfortable moving forward with their job transfers or confirming their decision to move up into the bigger home or downsizing and getting moved before the holidays. Thus, making an opportunity for the buyer to have more homes to choose from and nicely tucked in bed for the New Year.
* Bottom-line consensus: 2020 is a great time to purchase a home or refinance. The economy is strong, mortgage rates are low, and new construction is booming. Do not miss out on the unique opportunities today’s real estate offers.