Much has been made recently of the upcoming presidential election’s impact on the housing market, and Redfin has more fuel for the fire: A recent Ipsos survey commissioned by the real estate brokerage found that nearly a quarter of prospective first-time homebuyers are holding off until after the presidency is decided.
Specifically, of respondents to the survey who indicated that they plan to purchase a home within the next year, Redfin asked, “Why not now or before then?” Roughly 23% of buyers who answered that question explicitly said that they are waiting until after the election to see how the economy is doing before they purchase a home.
That includes 20.4% of survey respondents who indicated that they are voting for Vice President Kamala Harris, as well as 25% of respondents who indicated they plan to vote for former president Donald Trump.
“Buying a home can be scary, especially if it’s your first time, you’re worried about the election and you’re not sure if the economy is going to get better or worse,” said Lindsay Garcia, a Redfin agent in Fort Lauderdale, Florida.
“Buyers are uncertain about what will happen in the election — especially first-time homebuyers. We have to remember the market is cyclical. The economy will keep improving and when we get past the election, buyers will start to feel more confident again.”
The most common reasons survey participants had for delaying their home purchase had nothing to do with the election or politics. For many, it’s merely a matter of timing: 30.3% said that they are currently on track financially to buy, but just not right now, garnering the highest share of any response. Ranking second, at 28.9%, was simply that the timing (of waiting until later in the next year) just works better for them and their partner or family.
But prospective first-time buyers are also curious to see if the presidential candidates are able to turn their ambitious housing policies into reality. For example, 26.1% of respondents said that they are waiting to see if Harris’ housing plan — which includes $25,000 in downpayment assistance for some first time homebuyers — goes into effect if she wins the election. And 15.9% of respondents are waiting to see how Trump will tackle affordable housing issues if he is elected.
Soon-to-be buyers are also gauging the impact of the Federal Reserve’s monetary policy, with 18.3% waiting for the Fed to cut rates further, which should positively impact mortgage rates.