Election Impact on the Real Estate Market

In an election year, as we near the election, almost every buyer and seller asks: Will the election impact the market? Should we wait to buy, wait to sell? And right after the election, we are asked: Does the outcome of the election make a difference, will it affect pricing and interest rates as we move into the new year?

Historically, nationally, the number of transactions during October to November of an election year decrease approximately 15% – about 10% higher than the normal “fall” slowdown. But it’s just a pause, as buyers bounce right back into the market following the election and those homeowners thinking about selling move forward with their plans to sell.

What is different and better about this election year? Party preference aside, this year, at this time, we have certainty now, in only days past Election Day. With certainty comes confidence. Certainty keeps the market pause shorter. Certainty keeps the market healthy and vibrant. The experts predict more activity in 2025 – nationally a 13% increase in transactions – and I am in total agreement.

I believe we all think our 4-County Mount Airy market has been going strong for years – and it has in some ways. Everyone has heard these stories: house goes under contract before it hits the market and closes way over asking price; house goes on the market, has ten offers within 5 days and closes way over asking price. But in reality, since 2021, our market has been in a recession. Prices have risen, but the actual number of transactions has decreased. As a nation, we have not seen this few transactions per year since the 1990’s. In Mount Airy – we’ve seen a 30% reduction in transactions along with a 30% increase in prices.