Why Home Prices Tend to Rise After Elections – Should You Act Now?
Happy Election Day! Did you know that, on average, home prices increase by 6.24% in the year following a U.S. election? As you head to the polls today, it’s a great time to consider how these trends could affect your real estate decisions.
Election Years and Home Prices: What’s the Connection?
Historically, home prices have shown a noticeable increase in the year following a presidential election. For example:
In 2020, the median home price was $296,700. By 2021, that jumped to $350,700!
In 2016, the median price rose from $235,500 to $248,800 in 2017.
This pattern isn’t just a coincidence. Changes in economic policy (decisions on taxes, spending, and regulations that can impact consumer spending and investment), consumer confidence (the level of optimism people have about the economy, which influences buying decisions), and the financial markets (places where stocks and bonds are traded, reflecting investor confidence and impacting lending rates) after an election can contribute to these price increases. Although every election year is unique, this trend is one to consider if you're planning a move.
Source: National Association of Realtors (NAR)
What is the "Median" Price?
You might wonder, what exactly is "median"? The median home price is the price right in the middle of all homes sold. If you lined up every home sold from the cheapest to the most expensive, the median is the one in the center. It’s a reliable measure because it isn’t influenced by extremely high or low prices, making it a good indicator of what most buyers are paying.
What Does This Mean for Buyers and Sellers?
For buyers, this trend suggests that waiting too long could lead to higher prices, especially if the election year follows the usual pattern. Even a small percentage increase can significantly impact your monthly payments and long-term investment.
For sellers, a post-election year can be an ideal time to list. Rising prices mean you might get more for your property than expected, as demand tends to remain strong.
Should You Act Now?
Whether you’re buying or selling, timing matters in real estate. But ultimately, it comes down to your unique financial situation and personal reasons for moving. Market trends are helpful to consider, yet each decision should align with what makes the most sense for you or your family. Whether it’s finding the right space or maximizing value, your goals and timing are key. If you’re thinking about making a move, the months following this election could be crucial. A 6.24% increase may not seem large, but on a $500,000 home, that’s an additional $31,200!
Let’s Talk About Your Options
Every real estate situation is unique, and I’m here to help you navigate yours. If you’re curious about how these trends could impact your specific goals, let’s chat! I can provide a personalized market analysis and help you determine the best timing.
Ready to discuss your next steps? Contact me today, and let’s make the most of the market together!
Source: National Association of Realtors (NAR)
Brandon Rouzan
Phone: 661-341-8397
Website: rouzanestates.com
Coldwell Banker A Hartwig Co.
Email: rouzanrealestate@gmail.com
Let’s work together to achieve your real estate goals!
