Home sales have traditionally slowed during an election year but this year seems worse than usual.
– Omaha inventory is up 22% YTD over 2023
– While YTD closed sales is only down .5% from 2023, September saw a 20.4% reduction in sales from the same time last year
– 30% of the current active inventory has reduced their asking price at least once
“Election anxiety” causes a shopping slump across many industries including cars, online shopping, vacations, even weddings.
Why does this happen? Consumers don’t like uncertainty and federal elections add a significant layer of financial uncertainty and emotional anxiety to big-ticket purchases.
“If the world starts to fall apart, you benefit from having a bunch of money in your mattress.” Kelly Goldsmith of Vanderbilt University explained in a recent New York Times article.
This years election shopping slump is also being amplified by broad economic concerns such as inflation and housing specific issues like volatile mortgage rates and the sticker shock of current home prices.
Will housing rebound? I’m predicting a small and short lived burst of home buying activity 3 or 4 weeks following the election before the Christmas slumber. I’m also predicting an active spring that will start in February, IF, and that’s a big ‘IF’, mortgage rates stabilize.