Will the Election Affect Atlanta’s Housing Market in 2024?

Has anyone told you that an election year will affect the housing market? 

While there is plenty of real estate gossip that circulates in the media and around dinner table conversations —many of these so-called “trends” are more fiction than fact. Some people believe political candidates will do whatever they can to sway voters, but that doesn’t guarantee a change in the market.

As your Atlanta real estate experts, we’re here to provide you with guidance on the real estate market that’s rooted in experience, historical data, and facts. So, before you make any rash decisions about buying or selling your home due to this year’s election, let’s shed a little light on what we know to be true.

Busting Myths

Let’s clear the air right here and now—contrary to popular belief, there is no consistent data to support the idea that interest rates will improve during an election year.

Let’s take a glimpse at this graph, here.

Looking at the past 13 elections, it's evident that mortgage rates have been hit and miss, with no clear pattern or trend. The housing market and mortgage rates during election years are influenced by various factors (such as inflation and the current economy), and historical data does not show that rates are directly affected by the election itself.

Will the Feds get involved?

Some people believe that the Federal Reserve—or even the president—might lower inflation to favor a particular party in power, but this is a myth. In reality, the Fed's rate policy is unlikely to be swayed by an upcoming election, as it operates independently and makes decisions based on economic indicators and data rather than political considerations.

More Recent Data

Let’s take a look at some more data. If you zoom in on the last six election years, again, you can see there isn’t a clear pattern. For instance, in 2020, interest rates were near record lows, but this was influenced by the pandemic rather than the election. Back in 2004 and 2008, rates were all over the place. Again, primarily due to economic factors. 

What About Inventory?

Aside from mortgage rates, the housing inventory plays a key factor in the state of the market. Home values are driven by a number of influences such as the supply of housing, the demand for those homes, and the trajectory of mortgage rates. An election year does not directly influence these factors, and therefore will not affect the housing inventory.

Final Thoughts

Now that you know the truth of this real estate myth, feel free to spread the word! It's important to be educated about the actual impact of elections on the housing market. 

The LaMon Team is here to provide you with accurate information on Atlanta’s real estate market and clarify any questions you have about buying, selling, or investing. If you have questions – we’re never too busy to sit down and chat with you.