Home Buying During Election Years

How does an election year affect the housing market, and what does it mean to you as a potential homebuyer? We take a quick look at the current market and election year trends to help you make an educated decision on homeownership.

Housing Market Snapshot

As we enter the fall season, the U.S. housing market continues to improve—anchored by low mortgage rates. Ohio is no exception with a current average 30-year mortgage fixed interest rate of 2.95% (as of October 2020).

The national median home listing price in September was $350,000, up 11% year-over-year. Many listings are getting multiple offers, selling above list price, and spending fewer days on the market.

Record-low mortgage rates have created this high demand, and as a result, have left a shortage of inventory and a hot seller’s market.

How long will this trend last?
Historically, the real estate market drops in October and November, and even more so during an election year. Based on the past 13 election cycles, home sales drop 15% in October and November during an election year. Buyers and sellers tend to be more cautious from the uncertainty of election results and home sales may be delayed until after the election. Encouragingly, overall sales are usually not severely impacted as they rebound quickly post-election.

This year has understandably been a bit different. The pandemic slowed buying activity throughout spring 2020 but has since gained traction over the past few months. Exactly how much will the election affect the market during the remainder of 2020? Well, that has yet to be seen.

Bottom Line

Many sources expect mortgage rates to remain low past the election. Homebuyers can take advantage of these low rates but be prepared for potential low inventory and homes sitting on the market for less time as the housing market continues to recover.

Contact us to learn more about your loan options as we help take the confusion out of home buying.

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