Nearly 40% of home shoppers will pause until after the election: survey
Homebuyers often adjust their plans due to the uncertainty that an election year can bring. With less than 100 days until the 2024 election, a majority of buyers are taking note.
This is evident from research results released on Thursday by Veterans United Home Loans, which shows that 60% of potential buyers take the elections into account. Even more dramatic, 38% of home buyers are pausing their search until after Election Day.
“The upcoming election is clearly weighing on the minds of potential homebuyers,” Chris Birk, vice president of Veterans United, said in a statement. “Americans are considering the potential impact of political changes on the economy and housing market, causing many to adjust their purchasing timelines accordingly.”
The quarterly survey surveyed 900 potential homebuyers, including veterans, current military personnel and civilians. The results highlight some interesting divisions between veterans and civilians.
Only 25% of civilians plan to make a purchase in the next six months, while 40% of veterans say the same. When asked if they feel better about their finances compared to a year ago, 63% of veterans and 59% of civilians said yes. Each of these numbers is higher than a year ago.
If home buyers follow through with their plans to wait until after the election to buy, it could spell more bad news for a stalled housing market as the number of buyers waiting on the sidelines is already high. But affordability and mortgage interest rates are the main reasons why they are reluctant.
The Federal Reserve will likely cut rates in September, and could do so several times before the end of the year. If interest rates do indeed fall, buyers who say they want to wait until after the election will be faced with a choice: take advantage of lower interest rates before the election, or wait out the uncertainty caused by what has already been a wild election cycle.
Veterans United Home Loans is a full-service lender based in Columbia, Missouri. According to data from the The U.S. Department of Veterans Affairs (VA), it funded more than $17 billion in VA loans in 2023, making it the nation’s largest VA lender.
