The dust has settled, and we finally have a new President of the United States. With the craziness of this election season, many people have asked me what we can expect from the housing market in the coming months and years, so I’m excited to tackle these topics and provide some clarity to you.
We have heard the question of “What happens next?” a lot over the last six months. Here’s the truth: elections can affect anything from mortgage rates to housing prices, stock market values, and corporate investments. However, studies show that during a typical election year, the uncertainty of a presidential race itself can have more of an impact on the housing market and economy than the actual outcome of the election. Statistics show that home prices rise 1.5% less during an election year than the year before an election and they rise 1% less in the year after the election.
The good news is that the U.S. housing market is stronger than it was during the 2012 election, as is the economy overall. Based on that, we should continue to see the market go up for the following year.