Home sales tend to dip in the month before elections and bounce back after.

Are you wondering when to make your move now that we’re nearing election season? You’re right—elections impact real estate more than you think, and understanding these shifts is key to making smart selling or buying decisions. Today, I will share our top market insights on the election season’s impact on the housing market. Here’s what you need to know:

1. Pre-election sales slowdown. We typically see significant drops in sales activity in the month leading to election day. In non-presidential election years, sales can slow by about 9%. However, in presidential election years, the drop the month before is even more pronounced, with sales decreasing by 15%. This change is often attributed to the overall feeling of uncertainty that the election period brings, making buyers and sellers take the “wait and see” approach before making their move.

2. Pre-election rates drop. Finally, another fascinating trend is that interest rates tend to drop slightly before an election. This could be a strategy to stimulate the economy or perhaps influence voter sentiment. Either way, these patterns show just how intertwined politics and real estate can be.

Understanding market cycles can help you time your next move more strategically.

3. Post-election sales rebound. Interestingly, after the elections, we often see a rebound. In nine of the last 11 election cycles, home sales have bounced back significantly in the months following the vote. This is likely because the uncertainty has lifted, and people feel more confident making decisions.

4. Post-election price increase. Home prices tend to rise after these election-year slowdowns. In fact, seven of the last 10 years have seen price increases post-election. This suggests that both sales and home prices follow a similar recovery pattern after the political uncertainty subsides.

I hope you find these insights helpful. If you’re looking to buy or sell a home in Bigfork, Montana, reach out to us anytime. Just call (406) 253-7268 to schedule a consultation. Remember: The right market knowledge will help you time your sale or purchase, but only the right Realtor can help you hit your goals quickly and successfully. I look forward to hearing from you!