As the 2024 election draws near, many prospective homebuyers are carefully considering how the political outcome could influence their decision to purchase a home. According to a recent Redfin survey, nearly a quarter of first-time homebuyers are holding off on buying until after the election, making the election impact on homebuying a significant factor in today’s real estate market.
2024 Election Impact on Homebuying
Why Are Buyers Waiting?
The survey, conducted in September 2024, revealed that 23% of likely first-time homebuyers are delaying their purchase until the election results are clear. This delay is fueled by uncertainty about economic and housing policies, particularly those proposed by the leading candidates. Kamala Harris’ plan to provide $25,000 in down payment assistance is a key factor for 26.1% of respondents, while 15.9% are waiting to see if Donald Trump’s housing affordability plans will take effect.
Beyond candidate policies, personal finances play a critical role. The survey noted that 30.3% of respondents feel they are on track to buy a home within the next year but prefer to wait for better timing. For others, waiting allows them more flexibility with family or partner decisions. The election impact on homebuying is also driven by concerns over the broader economy, interest rate cuts, and potential affordable housing initiatives that may emerge depending on who takes office.
How Economic Factors and Policies Influence Buyers
Uncertainty around interest rates is another key factor for those delaying their home purchase. With 18.3% of respondents waiting for the Federal Reserve to cut rates further, the economic environment remains top of mind. Additionally, many are hopeful that new affordable housing initiatives will come from either the federal or local government, influencing nearly 23.6% of buyers to wait and see.
The election impact on homebuying also intersects with immigration policies. Approximately 12.2% of first-time homebuyers are immigrants or visa holders concerned about their long-term status in the U.S. if immigration policies shift after the election.
What Experts Say
Real estate professionals have weighed in on the cautious attitude many buyers are taking as the election approaches. Lindsay Garcia, a Redfin premier agent, emphasized the cyclical nature of the market, stating that many buyers will regain confidence after the election. “Buying a home can be scary, especially if it’s your first time, and you’re worried about the election,” she explained. “But the market will improve, and once we get past the election, buyers will start to feel more secure in their decision-making.”
This sentiment reflects the overall market slowdown. According to the Redfin report, just 2.5% of U.S. homes changed hands in the first eight months of 2024—the lowest turnover rate in decades. Even as mortgage rates began to fall over the summer, the sluggish market has left many potential buyers on the sidelines, waiting for the election impact on homebuying to play out.
The Road Ahead for Homebuyers
With political uncertainty driving much of the delay, it’s clear that the 2024 election will have a lasting effect on the real estate market. Policies related to housing affordability, interest rates, and immigration are at the forefront of many buyers’ minds. While the current election season has introduced hesitation, experts predict that the market will pick up once the political landscape stabilizes, and buyers feel more confident moving forward with their purchases.
The election impact on homebuying is undeniable, with a significant portion of first-time buyers waiting for clarity on policy changes and economic stability. As the election approaches, the real estate market will likely remain cautious, but post-election, we can expect renewed buyer activity as confidence in housing policy solidifies.
