Wednesday, October 2, 2024
Don't bank on the election changing housing prices, but do remember to register and vote.
Urban Living
Posted By Babs De Lay on October 2, 2024, 4:00 AM
In a month we'll learn who the new president of the United States will be, unless ...? I don't want to go down the road of conspiracy theories, but wanted to add some facts to the age-old question: "Do presidential elections affect the housing market?"
According to the data keepers at the National Association of Realtors, when it's an election year for the CEO of the country, sales in November go down 9.4% versus a 9.8% dip in years where there isn't an election. On July 4, Newsweek interviewed the chief investment officer at mortgage lender New American Funding, who said: "There is certainly a human element to housing prices and mortgage rates. As a result, election years can bring more volatility to prices and rates than in non-election years. However, those moments of volatility are fleeting."
Both major party candidates promise to cut inflation, increase the housing supply and cut interest rates. We've just had a major half-point reduction by the Federal Reserve two weeks ago, which is saving buyers a bit on mortgage interest and credit card rates.
People forget that a year ago, rates were at 8% for an average home loan and now they are hovering in the low 6% area. No one can cut inflation pressures quickly, but increasing affordable housing will help what is being called a "frozen, mostly unaffordable market."
The market will respond to how we all vote in November, because if we as individual voters like the outcome we'll go out and buy things like cars, houses, furniture, appliances (i.e. big ticket items). There is no evidence, though, that presidential elections have a huge impact on home prices. According to CoreLogic, which has collected data since 1988, prices rose an average of 4.5% during the fall of non-election years compared to 4.4% in years with a presidential election.
I don't care who you vote for, as long as you do vote and participate in our democratic process. In Utah, you can register online at vote.org/register-to-vote/utah if your information is received by 5 p.m., at least 11 days before election day. If you're registering by mail you must make sure your registration is received by that same time, 11 days before an election. You can also register in-person on election day at a voting location.
To register in Utah, you must be a citizen of the U.S., have resided in the precinct in which you are registering to vote for at least 30 days prior to the election, be 18 years old by election day, not be convicted of certain felonies or treason or have been found to be mentally incompetent by a court of law.
For information on all Utah candidates, go to the League of Women Voters of Utah website: www.lwvutah.org. They offer non-partisan data on all those running for office in this year's election in November. I won't see you at the polls because I trust my mail-in ballot and the post office!
About The Author
Babs De Lay
A full-time broker/owner of Urban Utah Homes and Estates, Babs De Lay serves on the Salt Lake City Historic Landmark Commission. A writer and golfer, you'll find them working as a staff guardian at the Temple at Burning Man each year.
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