Is It Better To Wait Until After the Election To Buy a Home? Experts Weigh In
Written by
Nicole Spector
Edited by
Molly Sullivan
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Election fever is in the air, as we’re just a few months away from finding out who the next president of the U.S. will be. It’s an exciting but also tense and highly contentious time. Millions of Americans are experiencing financial anxiety as we await the results of who will take over the Oval Office in 2025.
People have questions, and some of them who are thinking about buying a house are confused about whether they should buy now or wait until the election is in the rearview mirror.
According to a new survey by Veterans United Home Loans, which polled 900 prospective homebuyers, 60% of people who plan to buy a home in the next three years say the 2024 election is a factor in their purchasing timeline, while 43% plan to wait until after the race is final to buy.
Is it better to wait until after the election is over to buy? Let’s hear what the experts have to say.
This Behavior Is Typical During Presidential Election Years
That prospective homebuyers — along with home sellers — are currently on the fence about going forward with their plans is no surprise. This is common during presidential election years.
“The housing market often experiences a slowdown as potential buyers and sellers may hesitate, waiting to see the outcome of the election,” said Nicole Grandelli, a licensed real estate agent and head of sales at Eastlight Condominium at CORE.
Home Prices Are Unlikely To Decrease When Interest Rates Drop
Prospective homebuyers may be anticipating home prices dropping, depending on who wins the presidential election. But they may be in for a rude surprise.
“Home prices are unlikely to decrease, and many sellers are holding onto their properties due to low interest rates they secured in the past,” Grandelli said. “Additionally, with limited new inventory coming onto the market, competition remains high. If interest rates do drop in the future, buyers can refinance later to take advantage of lower rates.”
Lower Interest Rates Could Be on the Horizon
The Federal Reserve has more than hinted at cutting interest rates now that inflation is cooling. Waiting until that happens (it could happen as soon as September) is an option, but there’s a caveat: Lower interest rates mean higher demand (which is already an issue with the housing inventory shortage) which means higher housing prices.
“We will see prices rise as buyers rush to take advantage of lower interest rates,” said Ralph DiBugnara, founder and president at Home Qualified.
Chris Wesser, president and executive chair at Redy, said that generally, the lower the prime interest rate the lower the mortgage interest rate and, therefore, the lower the short-term monthly payment and long-term overall cost of buying a home.
“History shows us that prime rates often drop in the quarter prior to a national election, and that could be meaningful,” Wesser said.
And now here’s some math to better understand Wesser’s point.
“Every ¼ point decrease in mortgage interest rates can create meaningful savings in both the short and long terms,” Wesser said. “For example, on a $440,000 home — the U.S. national average in July 2024 — a ¼ point drop in a 30-year mortgage yields a monthly savings of about $65 and a long-term savings of about $24,500.”
Lower Interest Rates Could Mean Higher Home Prices
But lower interest rates could mean higher home prices, particularly in what will likely be a sellers’ market.
“I believe that sellers markets — where there is a lack of homes for sale — are finally reaching a breaking point, and will be selling in the fourth of this year more frequently,” DiBugnara said. “This is being caused by higher dead loads, increased equity in their homes and less cash in their bank accounts. All this will most likely lead to an increase in prices post-election.”
Waiting Could Mean Missed Opportunities — And Bidding Wars
Some may feel more comfortable waiting to buy a home until we’re past the election, but they may miss out on opportunities.
“While lower interest rates are anticipated in September, which could attract more buyers, the current low inventory may lead to bidding wars,” Grandelli said. “This increased competition could put buyers at a disadvantage.”
The Bottom Line: It Depends on Your Needs and Comfort Level
Ultimately there are reasons to both wait and not wait to buy a home after election time.
“Many people think it’s best to wait until after in case there is some kind of crash or ripple effect caused by change that leads to prices being lower,” said Seamus Nally, the CEO of TurboTenant. “Others don’t think that’s going to happen, and instead believe it’s better to buy before because election times cause uncertainty, and uncertainty leads to people spending less money. Basically, that means that there may be less buyers on the market before an election, which could work out in your favor as a buyer.”
At the end of the day, prospective homebuyers have to weigh the pros and cons for nobody but themselves and decide whether they’re comfortable buying a home right now.
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