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4 Reasons Why the Election Won’t Dampen the Housing Market

Although Election Day has come and gone, Americans are still waiting with bated breath as states tally their final votes. This decision will have a major impact on our country, especially as the nation continues to navigate a pandemic and economic recession. However, one thing the election won’t change is the housing market.

The Real Estate Market Will Remain Steady Even After the Election

Political beliefs aside, many buyers and sellers remain concerned about how the election will reshape the housing market. Believe it or not, a number of factors actually point to the market doing better than ever before, even as America determines its next president.

Let’s take a look at why real estate will continue to thrive, as well as a few predictions for 2021.

Demand is strong among millennials

Moving after the election

All-time low interest rates continue to drive buyer demand higher than ever before, especially among younger generations. As millennials reach prime home-buying age, many cite affordability and a desire to build wealth as the top reasons why they’re moving in 2020. Some may also decide to buy due to marriage, children, or permanent remote work.

Shockingly low mortgage rates

House and piggy bank

To everyone’s surprise, the ongoing election drove interest rates down even further than expected. According to Forbes, the average rate for a 30-year mortgage plunged to 2.78%, which is the lowest it’s ever been. These attractive numbers prompted many potential buyers to resume their search for the perfect home.

Even if you aren’t quite ready to buy, rates may continue to stay this low well into 2021. In a recent report, Freddie Mac predicted that mortgage rates would stay below 3% from now until the end of next year.

Prices continue to appreciate

Graph of home prices

The continued lack of supply of existing homes for sale coupled with the surge in buyer demand has experts forecasting strong price appreciations over the next twelve months. This is fantastic news for sellers, especially if you’ve lived in your home for quite some time.

Not sure how much your home is worth? We’d be happy to give you a free home valuation to see how much your equity has grown over time!

History says so

Voting election sticker

Though it’s not uncommon to see the market slow down during an election year, 2020 has been an exception. After making a quick comeback during summer, the housing market remains stronger than it’s ever been before. There’s really no evidence to suggest that a new president will change this, especially as prices and demand continue to soar.

Ready to Buy or Sell Your Raleigh Home?

Whether you’re on the hunt for your forever home or want to get top dollar for your current place, Linda Craft & Team is here to help. Contact us at 919-235-0007 to see how we can put our 350+ years of combined experience to work for you. We look forward to helping you achieve your real estate goals!

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