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How Presidential Elections Impact the Houston, Katy, and Fulshear Housing Market

How Presidential Elections Impact the Housing Market in Houston, Katy, and Fulshear

As we approach another presidential election, many homeowners and prospective buyers in Houston, Katy, and Fulshear are wondering: “How will the election impact the housing market?” While the answer isn’t always straightforward, looking at historical data gives us some valuable insights into how the market has behaved in previous election years. 

Let’s dive into what you need to know about:

  • Whether home prices typically go up or down during an election year: Discover whether your home equity is safe based on past trends in the Houston area.
  • What happens with mortgage rates during an election year: Learn how rates have typically behaved and what that means for your buying power.
  • Do home sales slow down or pick up? Find out if now is a good time to buy or sell, or if you should wait for post-election market conditions.
  • What this means for you? Insider insights for Katy, Fulshear, and Houston area homeowners, sellers, and buyers.

Read on for the detailed breakdown and historical statistics or click the video below for your one-minute explanation. And as always, feel free to reach out at 832.594.1265 or [email protected] to discuss your unique situation!

Home Prices and Presidential Elections

Historically, home prices have shown a remarkable resilience during election years. In fact, according to data from the National Association of Realtors (NAR), home prices increased after 7 out of the last 8 presidential elections. Any guesses on the only year that prices went down? 2008! And that was during a housing recession. Not your typical year.

This trend suggests that, despite the political uncertainty that often accompanies election seasons, the housing market tends to follow the broader economic trends already in place. For homeowners in Houston, Katy, and Fulshear, this means your home equity is likely safe—even during an election year.
 

Mortgage Rates During Election Years

Another key factor to consider is mortgage rates. Historically, mortgage rates have decreased leading up to 8 of the last 11 presidential elections. This trend could be beneficial for both buyers and sellers. Lower rates typically mean more purchasing power for buyers, which can stimulate demand and support home prices.
 

For buyers who may have been frustrated by higher rates earlier in the year, this is a potential opportunity to lock in a more favorable rate. And for sellers, lower rates can mean more buyers in the market, potentially leading to a quicker sale.
 

Home Sales Tend to Bounce Back

It’s also worth noting that while there may be a slight slowdown in home sales leading up to an election—due to uncertainty—historical data shows that home sales tend to bounce back quickly in the year following an election. In fact, home sales increased after 9 out of the last 11 presidential elections.
 

This trend suggests that any dip in activity leading up to November is often short-lived, with the market regaining momentum shortly afterward. 
 

What Does This Mean for You?

If You’re a Homeowner: Rest assured that your home equity is likely to remain strong. Historical data shows that home prices generally rise even during election years, which is great news for your investment.

If You’re a Buyer: Keep an eye on mortgage rates. With rates trending lower leading up to the election, you might have a chance to lock in a better deal, giving you more buying power and options in the market.

If You’re a Seller: While there might be a slight slowdown in the market as we get closer to November, remember that the data shows a rebound is likely. Be prepared to act quickly once the election passes, as the market tends to regain momentum.
 

The Bottom Line

While every election year is different, the historical data provides some reassuring trends for homeowners and potential buyers. With home prices generally rising, mortgage rates potentially dipping, and sales bouncing back after elections, there’s every reason to stay optimistic about the housing market in Houston, Katy, and Fulshear.

Curious about how the Katy, Fulshear, and Houston real estate market is currently performing? Head to the Summer 2024 Summer Market Recap for the inside scoop on the record-breaking home prices and a 30% increase in the number of available homes.

Ready to explore your options? Let’s chat about how you can take advantage of the current market conditions to achieve your real estate goals. Reach out today for a personalized consultation.

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