What Happens to the Housing Market in an Election Year?
Many people believe that elections negatively impact the housing market, but data does not prove out that theory. The housing market is influenced by a variety of factors, primarily supply, demand, and interest rates.
For most Americans, election results will have little direct effect on their income, especially in the short run, and therefore should not significantly impact their decision to buy or sell a home.
Housing economists say there’s little evidence that elections actually affect home values. This is confirmed by the statistics.
Case-Shiller data shows that on average, home prices have climbed 4.84% in elections years since 1987. In non-election years, values rose 4.44%. The worst year for the housing market in recent decades by far was 2008. Home values plunged 12% that year , according to Case-Shiller. That had little to do with Barack Obama’s battle with John McCain.
Meanwhile, one of the best years for home prices was 2004. Home values soared 13.4%, a result that was mostly due to the inflating housing bubble, not George W. Bush’s re-election that year.
The question we are asked multiple times is, “Should I buy or sell a house in an election year?” If you are considering buying or selling a home, there’s essentially no reason to let an election season change your plans. Go for it!
Our Thanks,
Johnny & Jeff
