Will the 2024 Election Affect the Grand Junction Housing Market?
Has anyone told you that an election year affects the current housing market?
Political candidates will do whatever they can to sway voters, right? Not necessarily. (Shocking, we know.) While there are plenty of real estate trends that pop up from time to time—many of them are often unproven rumors.
So, before you make any rash decisions about buying or selling a home due to an election year, let’s shed a little light on the situation.
Busting Myths
Let’s clear the air right here and now—contrary to popular belief, there is no consistent data to support the idea that interest rates will improve during an election year.
Let’s take a glimpse at this graph, here
Looking at the past 13 elections, it's evident that mortgage rates have been hit and miss, with no clear pattern or trend. The housing market and mortgage rates during election years are influenced by various factors (such as inflation and the current economy), and historical data does not show that rates are directly affected by the election itself.
Will the Feds get involved?
Some people believe that the Federal Reserve—or even the president—might lower inflation to favor a particular party in power, but this is a myth. In reality, the Fed's rate policy is unlikely to be swayed by an upcoming election, as it operates independently and makes decisions based on economic indicators and data rather than political considerations.
More Recent Data
Let’s take a look at some more data. If you zoom in on the last six election years, again, you can see there isn’t a clear pattern. For instance, in 2020, interest rates were near record lows, but this was influenced by the pandemic rather than the election. Back in 2004 and 2008, rates were all over the place. Again, primarily due to economic factors.
What About Inventory?
Aside from mortgage rates, the housing inventory plays a key factor in the state of the market. Home values are driven by a number of factors such as the supply of housing, the demand for those homes, and the trajectory of mortgage rates. An election year does not directly influence these factors, and therefore will not affect the housing inventory.
Final Thoughts
It's important to be educated about the actual impact of elections on the housing market. Now, feel free to spread the word at your next summer BBQ!
As your trusted real estate expert, The Janice Burtis Team is here to provide you with accurate information and clarify any trending real estate topics. If you’re ever on the lookout for more real estate trends and wish to discuss the state of the market, we are always happy to chat!
