How The 2024 Election Will Affect The Housing Market

The 2024 United States election is one of the most anticipated political events in the country’s and global scene. The US is a major contributor to the world’s economy and an influencer in regional and global politics in security matters. That’s why all eyes and cameras will focus on the upcoming elections.

The investment community, especially the real estate sector, will analyze how these elections will impact different aspects of life, particularly housing. These elections will highly affect the economy, and the local housing market is no exception.

Whether you are an investor or consumer in the housing sector, let’s see how the upcoming election might affect this industry in terms of home prices, interest rates, and construction policies. That will help you prepare to make informed decisions when that time comes.

Factors That Affect the Housing Market

You need to understand which factors affect the housing market in order to understand how elections influence the real estate sector and, by extension, the housing market.

Economic Policies

Many factors influence the housing market, and many of them are equally driven by government policies. Policies that promote job growth, increase wages, or stimulate the economy can strengthen the housing market.

Employment creation, income growth, and general economic growth will also influence the demand for housing. More employment opportunities mean more income for the larger population to afford to buy homes. On the other hand, any policies that lead to slower or negative economic growth negatively impact investment and uptake of housing projects.

In addition, the government of the day, through the Federal Reserve, affects market interest rates, which in turn affects mortgage uptake due to loan pricing. Other indirect actions by the government that influence investment in housing are tax incentives, subsidies, and housing regulations, which can either boost or negatively affect the housing market.

Property Prices

The residential home market prices are affected by the supply of homes by sellers against the number of buyers. If you’re planning to sell your home, try to sell when the market is favorable, with higher demand and good prices. You may also need to offer better payment terms to have it move faster. For instance, selling California properties for cash may be difficult unless you get assistance from an agent to help you explore the market and get a cash buyer for your home. The agents have reliable information on what type of units are in demand and the best prices on the offing in the state.

Effect of Elections on House Market

Considering what drives the US housing market, how are these factors affected by the elections? As elections approach, several things may change before and mostly after the elections if there is a change in leadership at the highest office in the land.

Here are some of the ways these elections will influence the factors affecting the housing market.

Economic Confidence

The candidates’ broader economic policies can significantly affect the housing market. When people are unsure about the future, they may delay making big financial decisions, like buying a house. When candidates have policies that stimulate the economy, they will give investors more confidence and strengthen the housing market.

Commitment to more employment opportunities will also mean more income for the larger population to afford to buy homes. On the other hand, the winning candidate may initiate policies that lead to slower or negative economic growth, which will negatively impact housing.

Changes in Housing Policies

The housing market is highly influenced by changes in government policies in the real estate industry. During this election year, candidates debate the most appropriate way to accord citizens affordable housing. That will often come with proposals to change existing policies or introduce new ones that can impact housing how they find fit.

Change in Tax Policies

The Federal Reserve sets interest rates, but the president’s economic policies can influence these decisions. In housing, the rate of interest has a direct impact on the mortgage rates. Thus affecting the affordability of units that are purchased through financing. Any direction taken by candidates to increase interest rates will undermine buyers’ ability to borrow and pay loans. However, attempts to support the private sector by ensuring the rates go down will encourage more people to buy homes as mortgages will become affordable. Other policy changes on tax could also include maintaining mortgage interest as deductible from taxable income and review of property taxes.

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