ShareWRC-TV (NBC 4; Washington, D.C.)
Every election year in D.C., it’s not just the offices on Pennsylvania Avenue that can change hands. So, too, can the homes in the local real estate market.
In January, when a new president and new lawmakers are sworn in, new White House staff and congressional aides will come with them. That means new prospective homebuyers — but with interest rates still above 6% and the rental market up a quarter, will we see more buying or renting?
According to the National Association of Realtors® (NAR), which has been tracking real estate trends in election years since the '80s, presidential elections have a positive effect on the housing market nationwide. But the impact is even more significant in the D.C. metro area, with a 10% increase in home sales the year after an election.
But while housing inventory is increasing, it's still tough out there. In addition, NAR finds that median home prices in the D.C. area increase by an average of 5% percent the year after an election.
NAR adds that, when it comes to the presidential race, or election year as a whole, results may tilt the market one way or the other, but they say it’s not as important compared to mortgage rates and the changes to high-paying jobs.