HISTORICAL POST-ELECTION HOUSING TRENDS 

The Post-Election “Bounce: In many past election cycles, home sales tend to rise following the resolution of political uncertainty. This year may see a similar boost, especially in markets that saw a slowdown due to economic or policy anxieties.

Interest Rates and Consumer Confidence: Election years often impact Federal Reserve policies and, in turn, influence interest rates. Buyers might benefit from potential rate adjustments in the coming months, depending on market conditions and inflation trends.

HOW POLICY SHIFTS ARE EXPECT TO INFLUENCE HOUSING

Regulatory Changes: With the recent election outcomes, some deregulatory policies could be introduced to encourage more housing development. Eased zoning restrictions or reduced building regulations could help address housing shortages in specific areas, including high-growth areas like Phoenix.

Affordability Initiatives: The election results may bring increased support for housing affordability programs. Rent control and incentives for first-time homebuyers could be on the table, particularly in high-demand metro areas.

Tax Implications: Proposed adjustments to capital gains or property tax exemptions could impact real estate investments, influencing both small investors and larger property owners.

UNIQUE FACTORS IN THE CURRENT MARKET

Inventory Constraints: A lack of housing supply continues to define many markets. The “lock-in effect,” where homeowners are less inclined to sell due to higher mortgage rates on new purchases, is expected to persist. This could lead to fewer listings and higher prices in competitive areas.

High Mortgage Rates: Unlike some election years, mortgage rates remain high. This affects affordability and may lead to increased demand for alternative financing options or housing programs aimed at reducing barriers for buyers.

WHAT BUYERS & SELLERS SHOULD WATCH FOR IN 2025

For Sellers: The post-election period may increase buyer interest, especially in markets with limited listings. Pricing competitively and timing listings could be advantageous in the coming months.

For Buyers: Although rates remain high, increased inventory from new construction could ease competition in certain areas. Buyers may also find new incentives for affordability, so keeping an eye on local programs will be key.

For Investors: Potential changes to real estate tax laws could impact long-term returns on rental properties or vacation homes. Investors should consider adjusting strategies accordingly.

FINAL THOUGHTS: NAVIGATING THE POST-ELECTION HOUSING MARKET

The housing market in 2025 is expected to be dynamic as new policies roll out and economic factors stabilize. Staying informed and working with knowledgeable real estate professionals can make a significant difference for both buyers and sellers navigating this unique market.

As your one-stop source for all things real estate in Arizona, I’m here to guide you through these changes and help you make confident, strategic decisions. Let’s talk about your goals and how to navigate the post-election market with clarity and insight.