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How Do Presidential Elections Impact the Housing Market?

How Do Presidential Elections Impact the Housing Market?

By Christophe Choo Posted Jul 12, 2024 Beverly Hills, Latest Updates, Market Activity, Real Estate Advice for Buyers & Sellers, Real Estate Articles, What I'm Reading

How Do Presidential Elections Impact the Housing Market? | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert

With every presidential election, there are always questions about how the results might affect the housing market. If you're a homeowner or looking to buy in areas like Los Angeles or Beverly Hills, it's important to understand these potential impacts. Let's dive into how presidential elections have historically influenced the housing market and what this means for you.

Home Sales Trends During Presidential Elections

Historically, the housing market doesn't tend to look very different in presidential election years compared to other years. According to Lisa Sturtevant, Chief Economist at Bright MLS, home sales usually exhibit typical patterns despite the election.

For example, home sales increased after 9 out of the last 11 presidential elections. While there might be a slight slowdown in sales in November of an election year, they tend to bounce back quickly and climb the following year. This trend is evident when looking at U.S. annual existing home sales data. In election years, sales may dip slightly, but the rebound in the year after an election is consistent.

Mortgage Rates and Presidential Elections

Looking at the past 11 presidential elections, mortgage rates have often decreased leading up to 8 of them. From July to November in election years, mortgage rates historically tend to dip slightly. This trend has been seen consistently, even in recent election years. Lower mortgage rates can provide a great opportunity for homebuyers to secure more favorable loan terms.

Home Prices Post-Election

Another significant trend is that home prices generally continue to rise even during election years. In fact, home prices went up after 7 of the last 8 presidential elections. Prices usually follow the market's existing trend, which means if prices are already rising, they tend to keep climbing, regardless of the election.

Real Estate in Los Angeles and Beverly Hills

When considering the impact of presidential elections on local markets like Los Angeles and Beverly Hills, it's important to keep these national trends in mind. Both areas are known for their luxury real estate markets, with high demand for prime properties. The trends suggest that even in election years, these markets remain robust and resilient.

  • Beverly Hills: Known for its luxurious estates and prestigious addresses, Beverly Hills real estate continues to attract high-net-worth individuals. Whether it's a slowdown in November or a quick rebound after the election, the demand for Beverly Hills properties remains strong.
  • Los Angeles: As a sprawling metropolis with diverse neighborhoods, Los Angeles offers a variety of real estate options. From upscale homes in areas like Brentwood and Bel Air to more affordable options, the market trends reflect those seen nationally.

What This Means for You

If you're considering buying or selling a home in Los Angeles or Beverly Hills, understanding these trends can help you make informed decisions. The temporary impacts of a presidential election are just that—temporary. The overall trend shows resilience and continued growth in the housing market.

Bottom Line

Presidential elections historically have only a small and temporary impact on the housing market. Home sales, mortgage rates, and home prices tend to follow their usual trends, rebounding quickly after any brief election-related slowdown. For personalized insights into how these trends might affect your property in Los Angeles or Beverly Hills, let's connect. Contact us at 📱 310-777-6342 for expert advice and detailed market analysis.

Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value

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