How will the 2024 election affect real estate? As we approach the 2024 presidential election, many homebuyers and sellers are wondering how the election might impact the real estate market. Historically, elections have had noticeable effects on home prices and sales. By examining trends from past election years, we can gain some insight into how will the 2024 election affect real estate this time around.

Historical Trends in Home Prices During Election Years

When looking at the U.S. annual median sales price of existing single-family houses sold, an interesting pattern emerges: in 7 of the last 8 presidential elections, home prices increased in the year following the election.

For instance, in 1992, the median sales price was $105,500. By 1993, this had risen to $109,100. This trend continued in subsequent elections, with only one exception in 2008. During that period, home prices fell from $196,600 to $172,100, which coincides with the global financial crisis. In all other election years shown in the data, prices have seen an upward trend.

This consistent rise in home prices post-election could be due to various factors, including economic policies, market confidence, and the general economic climate that follows an election. It’s a clear indication that while elections do bring uncertainty, the real estate market has generally responded positively once the results are in and the direction of the new administration becomes clear.

Home Sales Trends Around Election Time

When it comes to home sales, the data is even more compelling. In 9 of the last 11 presidential elections, the number of existing home sales increased in the year following the election.

For example, after the 1984 election, home sales rose from 2,868,000 to 3,214,000. Similarly, after the 2000 election, sales went up from 5,173,000 to 5,335,000. This trend suggests that the uncertainty leading up to an election may cause some hesitation in the market, but once the election is over, buyers and sellers regain confidence, leading to increased activity.

How Will the 2024 Election Affect Real Estate?

As we move closer to the 2024 election, it’s natural for buyers and sellers to be cautious. However, history suggests that while the lead-up to an election can create some uncertainty, the real estate market tends to stabilize and even thrive in the years following an election.

With the data showing consistent growth in both home prices and sales after most presidential elections, 2024 may present opportunities for both buyers and sellers. While every election and its economic impact are unique, understanding these historical trends can help inform your decisions in the coming months.

For a more in-depth look at the potential effects of the 2024 election on real estate, check out this article.