Tuesday, July 16One Stop Realty and Real Estate News

Everything to Know About Home Prices & Elections – Hero Loan Team Michelle Johnson & Linda Peltz Realtor

The intersection of home prices and election years is a topic of great interest and speculation among prospective homebuyers. Concerns about market stability, interest rates, and economic policy shifts often lead to hesitation and uncertainty. 

However, historical data and expert insights suggest that election years might not be as tumultuous for the housing market as some fear. 
Recently Linda Peltz realtor Fresno CA & Michelle Johnson from Hero Loan Team discuss into how election years impact home prices and why now might still be an excellent time to buy a home. Tune in to video below for more

Historical Trends in Home Prices During Election Years

When considering whether to buy a home during an election year, it’s crucial to look at historical trends. According to research, home sales tend to increase following presidential elections. 

Specifically, data shows that in nine out of the last eleven presidential elections, home sales have risen in the year following the election. This trend suggests that while November might see a slowdown in sales, this is not necessarily indicative of a decline in home prices.

Moreover, home prices have generally followed an upward trajectory after elections. In seven of the last eight presidential elections, home prices increased the following year. The only exception was in 2009, a year marked by the global financial crisis, which was an outlier due to extraordinary economic conditions. This historical consistency underscores the resilience of the housing market during election cycles.

Everything to Know About Home Prices & Elections

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Understanding Interest Rates and Inflation

A common concern among buyers is the potential fluctuation of interest rates during an election year. While it’s a widespread belief that political changes directly affect interest rates, the reality is more complex. Interest rates are primarily influenced by inflation and broader economic conditions rather than the immediate outcomes of an election.

Linda Peltz realtor Fresno CA also confirms that Inflation has been a significant factor in recent years, prompting adjustments in interest rates. While inflation rates have decreased since the initial rate hikes, they have not yet reached levels that would warrant a reduction in interest rates. Consequently, waiting for post-election interest rate changes might not be a viable strategy. Instead, securing a mortgage now and potentially refinancing later if rates drop could be a more prudent approach.

Market Supply and Demand Dynamics

Another vital consideration is the supply and demand dynamics within the housing market. The COVID-19 pandemic significantly disrupted supply chains, labor availability, and construction activities, exacerbating an already existing housing shortage. While new constructions are underway, they have not yet met the heightened demand for homes.

Given the persistent supply constraints and robust demand, waiting for a significant drop in home prices might result in being priced out of the market. Entering the housing market sooner rather than later allows buyers to build equity over time. Even if the initial purchase isn’t a dream home, it’s a strategic step towards homeownership and financial stability.

Professional Guidance from Hero Loan Team

Navigating the housing market, especially during an election year, can be complex. This is where professional guidance becomes invaluable. Loan officers and real estate professionals, such as those at Hero Loan Team, offer expert insights and tailored advice based on extensive research and market trends. They can help potential buyers understand their financial standing, explore available loan programs, and prepare for a successful home purchase.

For instance, many buyers might overestimate the amount needed for down payments or closing costs. Programs are available to assist with these financial hurdles, making homeownership more accessible than one might initially think. Consulting with Hero Loan Team in the process ensures that buyers are well-prepared and can take advantage of favorable market conditions as they arise.

Michelle Johnson
Hero Loan Team
559-314-6760
michelle@heroloanteam.com

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Call me for further details:

Linda Peltz, eXp Realty | DRE 01997670
559-353-4556 
lwpproperty@gmail.com

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