If you’ve been thinking about
buying a home, there’s a good chance you’re wondering if it makes sense to wait and see who ends up getting elected as president in November.
According to a
recent survey, 60% of buyers are taking the election into consideration, concerned about how the results may impact the housing market, and nearly 40% of buyers claimed they’re actually waiting until after the election results are in to buy a house!
The main things buyers are hoping to see happen after the election are lower mortgage rates, and for houses to become more affordable.
It’s certainly understandable why someone would want to wait a few months, if it’ll mean they’re going to be able to
buy a house for less money, and pay a lot less interest over the life of their loan. But the odds of that happening as a result of the election probably aren’t in their favor…
Whoever Is Elected Won’t Have Immediate Impact on Real Estate
Every political candidate has a platform and talks about how their plans will change things for the better if they get elected, which often includes things related to the housing sector.
However, regardless of what any candidate suggests they’ll do to lower mortgage rates or home prices, there are a number of reasons why a home buyer won’t immediately benefit from them just by waiting to see who gets elected.
There are still months before they’re even officially in office. No matter which candidate wins the election, they’re not currently in office, and won’t be until January 20, 2025. So any buyer waiting until the election is over should actually be pausing their home purchase until at least late January, when the new president is officially sworn in.
The president doesn’t have entire control over their agenda. It’s unlikely that any plans the new president has in regard to real estate will be item number one on the to-do list, but even if they do make it a priority, there are a lot of steps to take before anything is likely to be approved, and a lot of legislators that’ll have a say in whether or not things get passed.
It takes time for changes to have an impact. Anything the president may do to impact the real estate market isn’t likely to make a serious dent in the market overnight. It could take months, or years before the effects are felt by home buyers.
The president doesn’t directly impact mortgage rates. It isn’t like a president can just tell mortgage lenders to lower their rates. They’re affected by the bond market, Federal Reserve policies, inflation rates, and other economic indicators. A president may indirectly affect all of these things, but the economy often has a mind of its own, and is affected by things on a global level.
Home values are determined more by supply and demand. One of the main reasons home prices stay at historically high levels is because there have been more buyers in the market for a home than there are homes to buy. Unless the elected president does something to immediately flood the market with homes for sale, the overall supply and demand issues won’t go away.
Take Advantage of Lower Demand in the Next Few Months Instead
Considering nearly 40% of buyers are saying that they’re pausing their home search until they know who is elected president, and 60% are concerned about how the election will impact them, there’s a good chance you could benefit from less competition in the next few months.
A temporary period of less competition in the market due to the coming election could actually give you more advantages than anything the next president may bring about, such as:
Less chance you’ll have to compete in a bidding war.
If a seller doesn’t have multiple offers to consider, there’s more of a chance for you to negotiate the price and terms of your purchase.
In order to be competitive, many buyers waive their rights to home inspections, and other major contingencies. But with less competition you might not be dealing with as many buyers willing to do so.
Sellers may even feel the need to lower their prices if demand is down enough and their houses aren’t selling quickly enough.
There’s no guarantee that you won’t face any competition from other buyers, or even see a noticeable difference — it really depends upon your local market and price range. But the only way to benefit from other buyers pausing their home search is to remain active in the market, and pounce on any opportunity that may present itself between now and November.
Thinking about buying a home? Now might be the perfect time. With 60% of buyers worried about the upcoming election and 40% waiting until after it’s over to buy, there’s less competition in the market.
While it’s understandable to think election results could lower mortgage rates and home prices, any changes would take time and aren’t guaranteed. Instead of waiting, take advantage of the current lower demand. Less competition means fewer bidding wars, better negotiating power, and potentially lower prices from sellers eager to close deals. Stay active in the market and seize opportunities now!