The upcoming election promises to lower interest rates and make homeownership more attainable despite economists' warnings about 2024 being a challenging year for housing.
Is 2024 feeling like a whirlwind? The year has been exciting, from the Kansas City Chiefs’ Super Bowl victory to the thrill of football season and Halloween fun. However, amidst all these rush of big events, there’s one question every homebuyer and seller wants to ask: What will the upcoming election mean for the housing market?
People keep asking if we can predict the future of real estate. While I don’t have a crystal ball, I have some facts to share. For a bit of fun, we even asked a Magic 8-Ball, and it said: "Yes, our presidential candidates have a plan." Here’s what it looks like:
Election’s impact on housing. Both candidates—Kamala Harris and Donald Trump—are promising solutions for the housing market. Economists from Fannie Mae, however, say 2024 could be one of the toughest years for housing since 1995. That’s significant. The biggest issue? Interest rates.
"No matter who wins the election, efforts to reduce interest rates and make housing more affordable are on the horizon."
High interest rates are blocking buyers from the market. Both candidates understand this and plan to reduce rates. One candidate wants to introduce tax credits for first-time buyers, while the other proposes broader tax benefits for buyers and sellers. Their common goal? Lowering rates to make homes affordable again.
How much difference does 1% make? Here’s a concrete example: If you’re purchasing a $500,000 home with a $400,000 mortgage, lowering the interest rate from 6% to 5% saves you about $250 monthly. Over time, that’s thousands of dollars back in your pocket. This savings opens doors for more buyers and helps the market recover.
Should you buy or sell now? Our Magic 8-Ball says, "Yes!" Seriously, now is an excellent time to make your move. Real estate success isn’t about perfectly timing the market—it’s about making smart decisions and staying invested. Waiting for the "perfect" time can cost you more in the long run, especially with interest rates potentially dropping.
As the weather cools and we head toward the holidays, now is the ideal moment to think about home—a place of comfort and security. Regardless of the election’s outcome, plans are already in motion to reduce interest rates and make homeownership more attainable.
If you're thinking about buying or selling, don’t wait. At The Graves Group, we’ve been your local experts for years, helping clients manage the market's ups and downs. If you have any questions or are ready to buy or sell your home, please contact us at [email protected]. We understand how to guide you through challenging times and ensure you have the knowledge and support to make confident decisions.
