The 2020 presidential election is a season filled with intrigue as the American people embark on tactics that have never been seen before. With so many uncertainties, it can be difficult to predict how the housing market might look once the blue and red dust has settled. History tells us that certain rates may be at their best yet. But who’s to say you’ll be getting the best deal? Here are a few new updates on how the housing market might look post-election.
November Sales Decrease
According to research, there is usually a 10% decrease in sales between October and November in an election year. This drop is usually temporary and may have a lot to do with people’s confidence in the market surrounding election day. This will also be dependent on the year being either a buyer or seller’s market. Regardless of this, experts believe the housing market will not be crashing anytime soon. Stay on the lookout for post-election deals!
First Year After the Election is the Best Time
In our previous post, it was mentioned that appreciation rates decrease 1.5% the year before elections, and 0.8% after elections. Therefore, the best time to buy is one year after a presidential election. During the last four years, homeownership has been increasing, which could prove to be a hopeful trend as we navigate the aftermath of the economic crisis.
Some of the Lowest Interest Rates We’ve Seen
According to The Mortgage Reports, housing agencies expect an average 30-year mortgage rate of 3.03% in 2021. If you want to take even more advantage, a new recent low was 2.8% this past month. This is another reason why post-election is a great buying season, despite an unpredictable economy. Take advantage of these low rates now before the season comes to an end!
While whoever is chosen to be the next commander in chief won’t affect the market directly, tax policies may change the game. Taxes will be either higher or lower in the housing market. Be sure to read up on the tax policies of our next elected president to better anticipate the shift in taxes.
Regardless of who you voted for, the numbers don’t lie. If you’re looking to buy at a reasonable price and rate, look into the best deals in 2021. Our team can connect you with information and homes that will best fit your needs. The upcoming year has us in the dark about a lot of things, but navigating the housing market doesn’t have to be a mystery! Pay attention to changing tax rates and take advantage of the lowest mortgage rates we’ve seen! No matter the state of the world, the time may be better than ever to grab the home of your dreams!