The election period often brings with it a lot of uncertainty. News outlets buzz with political updates, social media becomes a battleground, and people hold off on major decisions, especially homebuying. But did you know that purchasing a home during election season can actually be a great opportunity—especially in Central Florida?
If you're thinking about buying a home in Central Florida, here's why the election period might be the best time for you to take the plunge.
Election Period: What’s Really Happening in the Housing Market?
During an election year, many homebuyers tend to pause their decision-making, waiting to see how the political landscape will shift. But here's a surprising fact: historically, housing prices in Florida don’t fluctuate dramatically during elections.
In fact, according to data from the National Association of Realtors (NAR), home prices increase at a slightly slower rate in election years compared to non-election years. This slowdown can present a great opportunity for buyers. Instead of bidding wars and aggressive pricing, the market can stabilize, giving you a bit more breathing room to find the perfect home.
The Benefits of Buying a Home During Election Season
1. Less Competition = Better Deals
With many buyers sitting on the sidelines waiting for post-election results, competition is reduced. Fewer buyers actively searching for homes means you're less likely to encounter bidding wars or lose out on a property. You may even have the opportunity to negotiate a better price or secure favorable terms.
Pro tip: In Central Florida, the market sees seasonal shifts, too. Late fall and early winter tend to be quieter real estate months, and with the election timing, this could mean extra negotiating power for buyers.
2. Interest Rates May Be Favorable
During election periods, the Federal Reserve typically avoids drastic changes to interest rates, aiming for stability during political uncertainty. This often keeps mortgage rates steady or even low, which is great news for potential homebuyers looking to lock in a good deal.
According to Freddie Mac, the average 30-year fixed mortgage rate during the 2020 election hovered around 3.1%, which was historically low. As we approach the next election, keep an eye on mortgage trends—steady or low rates can save you thousands over the life of a loan.
3. More Inventory in Central Florida
Homeowners who’ve been considering selling might push their properties onto the market ahead of the election, trying to avoid any post-election economic shifts. This can increase inventory, meaning you'll have more homes to choose from in popular Central Florida locations like Orlando, Winter Park, and Kissimmee.
4. Tax Benefits Before the Year Ends
Buying a home before the end of the year can have some tax advantages. Closing on a home before December 31 allows you to deduct mortgage interest, property taxes, and certain closing costs on that year’s tax return. This could give you a bigger refund or reduce your tax bill.
The Potential Downsides to Consider
Of course, no situation is without its downsides, and the election period is no exception.
1. Market Uncertainty
Some buyers may be worried about the outcome of the election and how it might affect economic policies, especially regarding taxes and homeownership incentives. Depending on who wins the election, policies could change, and this could impact the housing market down the road. However, it's important to remember that real estate is a long-term investment, and while short-term uncertainty may exist, Florida’s housing market has shown resilience over the years.
2. Delays in Processing
Election periods can sometimes cause delays in the mortgage approval process, especially as government agencies might slow down due to changes in leadership or other election-related matters. Additionally, lenders and financial institutions may become more cautious, requiring more thorough evaluations of applications.
3. Psychological Impact
Election years bring heightened emotions, and this might affect your own mindset about making such a large financial commitment. However, staying informed about the local real estate market and focusing on long-term financial goals can help mitigate these feelings of uncertainty.
Why Central Florida is Still a Hot Spot
Florida continues to be one of the top destinations for homebuyers due to its attractive lifestyle, weather, and economic opportunities. Central Florida, in particular, is appealing due to its balance between metropolitan living and suburban comfort.
Orlando, known for its entertainment and tourism industry, is experiencing a growing job market. Kissimmee and Winter Park offer proximity to major attractions while maintaining a peaceful, residential feel. With world-class schools, golf courses, and a booming healthcare sector, Central Florida remains a prime location for homebuyers.
Final Thoughts: Should You Buy a Home During Election Season?
While the election period can create a sense of hesitation, it also presents unique opportunities for savvy homebuyers in Central Florida. Lower competition, stable interest rates, and increased inventory make it a great time to explore the market. Sure, there may be some uncertainty, but remember, the fundamentals of real estate—location, affordability, and timing—are on your side.
So if you’re ready to make the leap, this election season could be the perfect time to find your dream home.
Ready to buy a home in Central Florida?Contact a real estate agent today and take advantage of the opportunities during this election period.