Buy a House Before This Election? First-Timers Vote No 

Nearly a quarter of first-time buyers may wait even longer, to see if down payment help or other candidate promises materialize in 2025, a Redfin survey found.

Many people are wary of making big decisions during periods of uncertainty — like the lead-up to a presidential election. And that’s playing out in the housing market, with a significant number of first-time homebuyers waiting to see how the presidential election turns out before moving forward with a purchase, a new Redfin survey found.

In a poll of nearly 500 first-time buyers who plan to buy in the next 12 months, 23% said they are waiting to do so until after the election — an event that could determine the shape of new housing policies in 2025 and affect overall confidence in the economy.

Keeping an Eye on Policy Proposals

First-time buyers are younger than repeat buyers — around age 35 vs. age 58 — and may be more concerned about housing affordability, which is a top election issue for young voters. 

Redfin found that some buyers want to see how the candidates’ housing proposals pan out before making a home purchase. 

More than a quarter of the respondents (26.1%) said they are waiting to see if Kamala Harris’ housing plan goes into effect — a plan that includes $25,000 in down payment assistance for some first-time buyers. 

Nearly 16% said they are waiting to see how Donald Trump will tackle affordable housing issues if he is elected.

Post-Election, Confidence Could Improve

The findings are a sign of buyer uncertainty about the election, said Lindsay Garcia, a Redfin agent in Fort Lauderdale, Florida — something borne out by other reports, including a survey by Veterans United Home Loans which found that roughly 38% of respondents were pausing their home search until after the election. 

But that also means the situation should be temporary.

“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,” Garcia said.

For Some, It’s Just Not the Right Time

While the election is weighing on some first-time buyers, it wasn’t the main reason people were waiting to buy. More than 30% of those surveyed said they’re still saving up for their home purchase, and nearly 29% said the timing wasn’t yet right for them or their family. 

And more than 18% are waiting for the Fed to cut rates further in the hopes that mortgage rates will then decline as well.

Up for Debate

Industry experts are split on whether the housing market will get a jumpstart once the uncertainty of the election is over. Celebrity broker Ryan Serhant recently told Fox Business that he expects the real estate market to come roaring back in 2025 since inventory is up and rates are lower than they were a year ago.

Others say interest rates still haven’t come down far enough, especially as home prices keep rising.

Mark Palim, chief economist at Fannie Mae, noted that sales were still sluggish even when rates were around 6%.  “This signals to us that consumers are paying attention to the easing interest rate environment but still feel stymied by the considerable run-up in home prices over the last four years,” Palim said.

Source: Real Estate News

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