{"id":3248,"date":"2020-11-02T05:00:55","date_gmt":"2020-11-02T11:00:55","guid":{"rendered":"https:\/\/nwiloanguy.com\/blog\/4-reasons-why-the-election-wont-dampen-the-housing-market\/"},"modified":"2023-01-04T12:48:23","modified_gmt":"2023-01-04T18:48:23","slug":"4-reasons-why-the-election-wont-dampen-the-housing-market","status":"publish","type":"post","link":"https:\/\/nwiloanguy.com\/blog\/4-reasons-why-the-election-wont-dampen-the-housing-market\/","title":{"rendered":"4 Reasons Why the Election Won\u2019t Dampen the Housing Market"},"content":{"rendered":"<p><img data-recalc-dims=\"1\" decoding=\"async\"  src=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2020\/10\/29170909\/20201102-KCM-Share-549x300.jpg?w=358&#038;ssl=1\" class=\"webfeedsFeaturedVisual wp-post-image\" alt=\"4 Reasons Why the Election Won\u2019t Dampen the Housing Market | Simplifying The Market\" loading=\"lazy\" style=\"margin-bottom: 5px;clear:both;max-width: 100%\" \/><\/p>\n<p>Tomorrow, Americans will decide our President for the next four years. That decision will have a major impact on many aspects of life in this country, but the residential real estate market will not be one of them.<span id=\"more-43280\"><\/span><\/p>\n<p>Analysts will try to measure the impact feasible changes in regulations might have on housing, the effect of a possible first-time buyer program, and any number of other situations based on who wins. The housing market, however, will remain strong for four reasons:<\/p>\n<h4><strong>1. Demand Is Strong<\/strong> <strong>among Millennials<\/strong><\/h4>\n<p>The nation&#8217;s largest <a href=\"https:\/\/www.simplifyingthemarket.com\/2020\/10\/28\/buyer-interest-is-growing-among-younger-generations\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">generation<\/a> began entering the housing market last year as they reached the age to marry and have children &#8211; two key drivers of homeownership. As the <em>Wall Street Journal<\/em> recently <a href=\"https:\/\/www.wsj.com\/articles\/millennials-help-power-this-years-housing-market-rebound-11598520601\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">reported<\/a>:<\/p>\n<blockquote>\n<p><em>\u201cMillennials, long viewed as perennial home renters who were reluctant or unable to buy, are now emerging as a driving force in the U.S. housing market\u2019s recent recovery.\u201d<\/em><\/p>\n<\/blockquote>\n<h4><strong>2. Mortgage Rates Are Historically Low <\/strong><\/h4>\n<p><a href=\"https:\/\/www.simplifyingthemarket.com\/2020\/08\/14\/mortgage-rates-payments-by-decade-infographic\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">All-time low<\/a> interest rates are also driving demand across all generations. Strong demand created by this rate drop has countered other economic disruptions (e.g., pandemic, recession, record unemployment).<\/p>\n<p>In addition, <em>Freddie Mac<\/em> just <a href=\"http:\/\/www.freddiemac.com\/research\/forecast\/20201014_quarterly_economic_forecast.page?\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">forecasted<\/a> mortgage rates to remain low through next year:<\/p>\n<blockquote>\n<p><em>\u201cOne of the main drivers of the strong housing recovery is historically low mortgage interest rates\u2026Given weakness in the broader economy, the Federal Reserve\u2019s signal that its policy rate will remain low until inflation picks up, and no signs of inflation, we forecast mortgage rates to remain flat over the next year. <strong>From the third quarter of 2020 through the end of 2021, we forecast mortgage rates to remain unchanged at 3%.\u201d<\/strong><\/em><\/p>\n<\/blockquote>\n<h4><strong>3. Prices Continue to Appreciate<\/strong><\/h4>\n<p>The continued lack of supply of existing homes for sale coupled with the surge in buyer demand has experts forecasting <a href=\"https:\/\/www.simplifyingthemarket.com\/2020\/10\/22\/home-values-projected-to-keep-rising\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">strong price appreciation<\/a> over the next twelve months.<\/p>\n<h4><strong>4. History Says So<\/strong><\/h4>\n<p>Though it\u2019s true that the market slows slightly in November when it\u2019s a Presidential election year, the pace returns quickly. Here\u2019s an explanation as to why from the <a href=\"http:\/\/researchwiseny.btig.com\/ResearchLibraryAnalec\/DownloadResearch.aspx?E=cafidk-b\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><em>Homebuilding Industry Report<\/em><\/a> by<em> BTIG<\/em>:<\/p>\n<blockquote>\n<p><em>\u201cThis may indicate that potential homebuyers may become more cautious in the face of national election uncertainty. This caution is temporary, and ultimately results in deferred sales, as the economy, jobs, interest rates and consumer confidence all have far more meaningful roles in the home purchase decision than a Presidential election result in the months that follow.\u201d<\/em><\/p>\n<\/blockquote>\n<p>Ali Wolf, <em>Chief Economist<\/em> for <em>Meyers Research,<\/em> also <a href=\"https:\/\/meyersresearchllc.com\/planning-for-2020-what-an-election-year-means-for-home-sales\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">notes<\/a>:<\/p>\n<blockquote>\n<p><em>\u201cHistory suggests that the slowdown is largely concentrated in the month of November. In fact, the year after a presidential election is the best of the four-year cycle. This suggests that demand for new housing is not lost because of election uncertainty, rather it gets pushed out to the following year as long as the economy stays on track.\u201d<\/em><\/p>\n<\/blockquote>\n<h3><strong>Bottom Line<\/strong><\/h3>\n<p>There\u2019s no doubt this is one of the most contentious presidential elections in our nation\u2019s history. The outcome will have a major impact on many sectors of the economy. However, as Matthew Speakman, an economist at <em>Zillow<\/em>, explained last week:<\/p>\n<blockquote>\n<p><em>\u201cWhile the path of the overall economy is likely to be most directly dictated by coronavirus-related and political developments in the coming months, recent trends suggest that <strong>the housing market \u2013 which has basically withstood every pandemic-related challenge to this point \u2013 will continue its strong momentum in the months to come.<\/strong>\u201d<\/em><\/p>\n<\/blockquote>\n<p>Source: New feed<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tomorrow, Americans will decide our President for the next four years. That decision will have a major impact on many aspects of life in this country, but the residential real estate market will not be one of them. Analysts will try to measure the impact feasible changes in regulations might have on housing, the effect [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3249,"comment_status":"false","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10157519356927224_105287467588662":"","twitter_15771620_15771620":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[54],"class_list":{"0":"post-3248","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-local-info","8":"tag-100-financing","9":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>4 Reasons Why the Election Won\u2019t Dampen the Housing Market&#8212;NWI Loan Guy Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nwiloanguy.com\/blog\/4-reasons-why-the-election-wont-dampen-the-housing-market\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"4 Reasons Why the Election Won\u2019t Dampen the Housing Market&#8212;NWI Loan Guy Blog\" \/>\n<meta property=\"og:description\" content=\"Tomorrow, Americans will decide our President for the next four years. 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