The Elections Affect Real Estate, but How?

   Can you believe it?  Presidential elections are right around the corner! While most people are focused on politics during election season, one area that often flies under the radar is how elections affect the real estate market. But believe it or not, the real estate market experiences some interesting changes during election years — particularly between November and January. If you're planning to buy or sell property soon, understanding these shifts can help you navigate the market effectively.

What Happens to the Real Estate Market During Elections?

     Historically, we see a 14% drop in real estate transactions during national elections. This lull typically stretches from November through January, covering the period when uncertainty is at its peak until the newly elected or returning president officially takes office.

    Why the dip? It’s simple — people tend to hold off on major financial decisions, like buying or selling a house, when the future feels uncertain. Potential buyers and sellers often adopt a “wait and see” approach, which slows down activity across the board.

What Buyers Should Know

    If you’re in the market to buy a home, this could actually be an ideal time. With fewer buyers active, competition dwindles, meaning you might find yourself in a stronger negotiating position. The chance to snag a great property — even at a lower price — increases because there are fewer bidding wars and more motivated sellers. Essentially, the field clears out a bit, giving you the perfect window to “steal” a house at a better deal.

Advice for Sellers: No Need to Panic

   If you’re selling during election season, there’s no need to worry. While the market might feel slow, it almost always rebounds quickly after the elections. In fact, January often brings a surge in activity, with buyers re-entering the market once the political uncertainty settles.

    In my experience, the market typically bounces back stronger in January than it was in November. Of course, market dynamics can vary depending on the outcome of the election and how people feel about the result. But in general, real estate is resilient — so don’t panic if things slow down during these months.

A Balanced Perspective: Markets Recover, No Matter What

    Remember that elections are temporary. Real estate cycles are influenced by many factors, from interest rates to job growth and consumer confidence. While politics may cause short-term hesitation, the underlying fundamentals of the housing market remain solid. Sellers can trust that activity will return soon, and buyers can seize a rare opportunity for less competition.

Final Thoughts

    Election season may feel uncertain, but the real estate market has weathered many elections before, and it will again. So, my advice? Get out and vote! Exercise your right to shape the future — and know that the real estate market will stabilize come January. Whether you’re buying or selling, understanding these trends allows you to make the most of the season.

    If you need help navigating the market during this time, I’d be happy to guide you through the process. Let’s make sure your real estate goals stay on track, election season or not!

Check out my YouTube video on this matter below!