How an Election Year Impacts the Real Estate Market

It’s an election year, and you may wonder how it will affect the real estate market. Fortunately, we’re here to share insights on how buyer and seller behavior tends to shift during this time.

In episode 050 of the Realestatable podcast, we provide advice on how you can help your clients make informed decisions during the uncertainty of an election year. This blog post gives you a sneak peek of what to expect in the episode.

Election Media May Delay Decisions

One effect we’ve noticed during this election year is that buyers are taking longer to make decisions. Part of it has to do with the issues they’re hearing about in the media.

For example, 41% of Americans are worried about inflation and economic issues. This concern leads them to believe interest rates may rise after the election. Just to clarify, we’re currently not seeing any increase in real estate market interest rates!

With intense media coverage debating which candidate will best address these issues, buyers are more cautious and taking longer to decide. How can agents help inform them and speed up the process?

Focus More on the Holiday Season

Election year or not, the real estate market typically slows down around the holidays. Data from the National Association of Realtors (NAR) shows that the winter months are generally slower than the summer.

Sellers can expect their home to stay on the market about 50% longer in winter than in spring and early summer. So, if you have a seller worried that their home has been on the market too long due to the election, consider sharing information on how the market changes with the seasons.

For buyers, discussing holiday plans can be a great way to encourage a decision. Do they want a home where they can host family and friends for the holidays? If so, now is the perfect time to start their home-buying journey.

Share Market Data and Historical Context

Elections can stir strong emotions and impact people’s decision-making. Help your clients make more informed choices by sharing data.

Show buyers that historically, the real estate market experiences little to no drastic changes following elections. Providing this insight can help clients make decisions based on their personal needs and timing rather than speculative fears.

A CMA for Client Engagement

If you have a client set on waiting until after the election to decide, consider offering a mini Comparative Market Analysis (CMA) to keep them engaged and informed.

This approach allows you to show how local property values and market trends are evolving independently of the election. It can also provide a clear picture of current prices, giving clients more confidence in their decisions.

Creating a CMA might take some time, but don’t worry—we’ve done most of the work for you. Download our pre-prepared spreadsheet to present the most relevant data to your clients.

Stay Positive During This Busy Time

Instead of getting caught up in political concerns, stay focused on your clients’ goals. Helping them concentrate on their home-buying objectives will keep the process moving forward.

And don’t forget to care for yourself. If you need a break, take it—your well-being is essential.

We’re here to support you through this busy season, always working behind the scenes to make things easier. Grab a copy of our email templates and keep your clients well-informed and reassured beyond this election year.