Written: October 9, 2024
As we approach the end of 2024, potential homebuyers are facing a unique opportunity in the housing market. Interest rates have started to drop after a period of increases, and with the upcoming election, the real estate market is set for potential shifts that could impact buyers in meaningful ways.
Interest Rates Are Dropping – What Does This Mean for You?
For the past few years, interest rates have been a significant barrier for many would-be homeowners, as higher rates increased monthly mortgage payments. However, we’ve recently seen a reversal of this trend. Lower rates mean lower monthly payments, which can significantly affect your ability to buy a home. If you’ve been waiting on the sidelines, now might be the right moment to take advantage of these changes before rates fluctuate again.
How the Election Could Affect the Real Estate Market
With the election on the horizon, there’s a lot of speculation about how the outcome could influence the housing market. Historically, election years can bring uncertainty, but they can also lead to beneficial changes. Policymakers might introduce incentives or changes in tax policy that can impact affordability and availability in the housing market.
While we can’t predict every policy shift, we do know that market conditions can change quickly. Entering the market before election-induced fluctuations can be a smart move, as waiting might mean missing out on favorable conditions.
The following is sourced from Keeping Current Matters
“Home Sales Might Slow Down-But Not for Long
Historically speaking, home sales typically slow down in the fall following the spring and summer rush.
So will the election impact this even more?
This is what Ali Wolf, Chief Economist at Zonda, anticipates will happen:
“Usually, home sales are unchanged compared to a non-election year with the exception being November. In an election year, November is slower than normal.”
Basically, people get a bit nervous about making big decisions during election time. But don’t worry – this slowdown is just temporary. History shows that home sales bounce back in December and keep going up the next year.
For instance, data from the Department of Housing and Urban Development (HUD) and the National Association of Realtors (NAR) shows that after nine of the last eleven presidential elections, home sales increased the following year (check out the graph below):
Why Now Is the Right Time to Buy
Given the combination of falling interest rates and the uncertainty surrounding the election, now could be one of the best times to buy a home. The current environment provides buyers with more favorable loan options and potentially lower costs. If you’re ready to take the next step toward homeownership, you don’t want to miss out on this window of opportunity.
At Modern Heart Realty, we’re here to help you navigate these dynamic times. Whether you’re a first-time homebuyer or looking to upgrade, our team is ready to provide the expertise you need to make informed decisions. Contact us today to discuss your options and start your homebuying journey.