The historical effect of election years on the U.S. residential real estate market reveals subtle yet significant trends. While uncertainty typically slows down housing activity before Election Day, the market quickly regains momentum once the political landscape becomes clear. Here’s a breakdown of how presidential election years affect real estate, based on historical data.

1. Pre-Election Jitters: A Cautious Market
In the lead-up to elections, both buyers and sellers often hesitate. Many adopt a "wait-and-see" attitude, anticipating how a new administration's policies might impact interest rates and housing affordability. As a result, home sales usually dip before the election.
2. Post-Election Rebound: Confidence Returns
Once the election results are in, the market typically rebounds as uncertainty fades. Historically, after 9 of the last 11 elections, home sales increased in the following year. Buyers and sellers regain confidence, knowing which policies will be in pla! ...