How the Recent Election Will Impact the Housing Market in 2025
With the election in the rearview, putting an end to months of political ads and relentless campaign messaging, many are wondering how the housing market—and broader markets in general—might unfold in the coming months and years. For buyers and sellers considering a move, here’s a look at what historical trends and data suggest we may see in the post-election market.
What to Expect in the Short Term
In the aftermath of an election, it’s typical to see a brief slowdown in housing activity. Sellers who had postponed listing their homes until the election results were confirmed may now be considering putting their properties on the market. This timing coincides with the seasonal lull that generally occurs as home-buying activity peaks in the spring and summer. As such, a temporary pause in new listings and buyer activity immediately following the election is expected.
If you’re planning to buy in the coming months, patience is key. While there may be a brief lull in housing inventory, this should self-correct as post-election nerves settle and home sellers return to a normal rhythm.
Historical Post-Election Bounce
Historically, the housing market has often rebounded after elections. Data from the Department of Housing and Urban Development (HUD) and the National Association of Realtors (NAR) shows that home sales increased in the year following nine of the last 11 presidential elections. Despite unique recent factors, such as the COVID-19 pandemic, a quick bounce in market activity is anticipated.
Home Prices and Stability
Election years typically don’t cause negative disruption to home prices, especially when inventory remains tight. Historical data suggests that home prices generally continue to rise post-election, with 2008 being a rare exception due to the housing market crash. If you’re a seller concerned about a potential decline in property values, there’s positive news: home prices have a tendency to remain stable or even increase in the years after an election. And when inventory is historically low, as it has been for nearly 2 years now, it is unlikely that home prices will decrease.?
Interest Rates and Housing Demand
Interest rates often fluctuate around election cycles, as we have already observed in recent quarters. If the Federal Reserve continues to adjusts its benchmark rates in the coming months, we are likely to see drops that make borrowing more affordable. While lower rates are obviously a positive to home buyers, they can also encourage more homeowners to sell, which could help increase available inventory. Historically, mortgage rates dropped leading up to eight of the last 11 presidential elections, a trend that seems to align with our current economic landscape.?
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Beyond Politics: Other Market Drivers
While elections and rate adjustments are factors, the housing market is also shaped by other influential drivers:
The Bottom Line
While presidential elections can temporarily influence the housing market, these effects tend to be relatively small and short-lived. Broader factors such as interest rates, economic health, and housing supply are likely to have a more significant impact on buying and selling decisions in the months ahead.
About Me
Executive Vice President, Nebraska Realty and Embarc Realty
As Executive Vice President of Nebraska Realty and Embarc Realty, I focus on driving growth and innovation as we expand into new markets. My background in sales, combined with a passion for building systems that support our agents, allows me to help create a better experience for both agents and clients.
At Nebraska Realty and Embarc Realty, we are committed to delivering personalized service and exceptional results, and I’m excited to be part of a team that values forward-thinking strategies. Outside of work, I enjoy traveling, staying active, exploring new restaurants, and spending time with my family and friends. My Christian faith is an important part of my life, and I’m grateful for the strong support system that surrounds me.