Tuesday, November 3, 2020 / by Breanna Thornton
Will the Housing Market Remain Stable with the Election?
This election cycle has been one of the most contentious in the nation’s history. Along with that comes the fear for the economy, jobs, and ultimately the housing market. Is it safe to put your house up for sale or make a move with all of the uncertainty? Hopefully the following observations can put your mind at ease.
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Millennials are Buying
As millennials approach marriage age and begin having children, their demand for a home increases. In the past, millennials were typically seen as renters. However, as wealth increases, they are more likely to purchase a home. With this demographic in the running, there will be more demand for homes despite the unknown of the election.
Extremely Low Mortgage Rates
Yes, we are talking about rates once again. There has never been such a great opportunity for home ownership since real estate is so affordable now. It may look like the prices of homes are on the rise, but since the interest rates remain low, it actually costs less per month to pay for a house. With this fact in mind, buying a home now is the way to go even if elections get a little hectic. Freddie Mac predicted the following:
“From the third quarter of 2020 through the end of 2021, we forecast mortgage rates to remain unchanged at 3%.”
Appreciating Home Prices
The fact that home prices are appreciating is a good sign. It means that demand for homes is still high, so the market is doing well. Not only that, but with increasing buyer demand, the home price is expected to appreciate a substantial amount over the next year no matter what the outcome of the election is.
Take a Look at the Past
We can examine past election years to predict what might happen this time around. There is usually a small dip in the market in November while the election is happening, but it is quick to bounce back. If people put off selling their home in November, there will be a flood of listings following the election. In addition to this, sources say that the year following a presidential election is the best of the four-year cycle. So we can confidently guess that 2021 will be a great year for the housing market.
At the end of the day, if the housing market was this resilient during a worldwide pandemic, there shouldn’t be much to fear about as far as the election. Homes are still flying off the market, and you can always contact a local agent to learn more about how selling your home now can be beneficial to you. Happy voting!
Header image from apmortgage.com