Lately, I’ve been hearing from clients who are apprehensive about making real estate moves with the presidential election on the horizon. Whether they’re thinking about investing, buying, or selling, the uncertainty surrounding this election year has made some hesitant to make real estate moves. It’s understandable—after all, election years often bring economic questions, and the real estate market can feel especially sensitive during these times. So, let’s dive into what the 2024 election might mean for real estate and explore how other factors, like interest rates and local market trends, might influence your decisions.

The Presidential Election Effect
Election years often bring about market fluctuations, but these shifts can vary widely. For example, during the 2008 election amidst the Great Recession, home prices dropped significantly. In contrast, despite the pandemic, the 2020 election saw a robust housing market driven by low interest rates and high demand.

Freddie Mac data shows that while there may be slight slowdowns in market activity leading up to elections, markets tend to stabilize or even rebound afterward. According to Freddie Mac, nine of the past eleven election cycles saw the market pick up after the election results were finalized. This pattern suggests that while elections can impact market activity temporarily, they are rarely a determining factor for long-term trends.

The Role of Interest Rates and Economic Policies
High interest rates, such as those seen in 2024, add an extra layer of complexity to real estate decisions this election year. These elevated rates have increased the cost of borrowing, impacting affordability for buyers and potentially cooling market activity. Unlike previous election years with lower rates that spurred buying, today’s environment means potential buyers need to be more strategic.

The Federal Reserve’s rate policies, influenced by broader economic conditions and federal administration, will significantly impact real estate. Although mortgage rates have shown a historical tendency to ease slightly as election day nears, substantial rate drops are not expected this year due to persistent inflation concerns.

Regional Market Variations
Different regions respond uniquely to election cycles, and this is especially true for areas like Coeur d'Alene, Idaho. Unlike metropolitan areas like Washington D.C., where the impact of election results can be pronounced due to government employment ties, Coeur d'Alene may experience more subtle shifts. Local factors, such as employment opportunities, housing inventory, and regional economic health, play a more immediate role here than national election outcomes.

Coeur d'Alene Real Estate in the Context of the 2024 Election
With the 2024 presidential election on the horizon, many potential buyers and investors in Coeur d'Alene are keeping a close eye on the market. While some may be cautious about making big decisions before the election results, Coeur d'Alene’s unique appeal offers a level of stability that makes it attractive for real estate investment, regardless of political cycles.

Coeur d'Alene is known for its stunning landscapes and desirable lifestyle, drawing both out-of-state buyers and local investors who value the area’s natural beauty and recreational offerings. Lakefront properties, for instance, are particularly sought after, thanks to their rarity and enduring appeal. Even in times of uncertainty, these waterfront homes often hold their value well due to limited availability and high demand from those looking to enjoy life by the lake.

Beyond the lakefront, Coeur d'Alene’s market as a whole benefits from a variety of lifestyle amenities, such as golf courses, hiking trails, and a vibrant downtown scene. These features consistently attract buyers, from those seeking primary residences to vacation homes, ensuring steady interest in the area. And with limited inventory, property values are likely to remain resilient even through election-related market hesitations​.

For those contemplating investment, Coeur d'Alene’s luxury segment can also offer reassurance. Buyers in this category often prioritize lifestyle and long-term potential over short-term fluctuations, which means that luxury properties in the area may continue to see interest from buyers seeking stability and exclusivity. Whether you’re considering a scenic lakefront retreat or a home near downtown, Coeur d'Alene provides a compelling mix of lifestyle-driven investment opportunities, potentially insulating the market from some election-year volatility.

How Different Investors Approach Election Years
Election cycles influence investor behaviors in various ways, as each group interprets and responds to market uncertainty differently. For short-term investors, such as house flippers or those seeking quick returns, election years may prompt caution due to potential market volatility. These investors often rely on stable, predictable markets to maximize profits, so the uncertainties surrounding election outcomes can lead to temporary pauses in buying and selling activity.

Long-term investors, on the other hand, typically have a different outlook. Real estate has a historical trend of appreciation over time, regardless of short-term fluctuations caused by political events. Many long-term investors view temporary dips as buying opportunities, believing that the market will correct itself in the years following an election. This approach can be particularly advantageous in places like Coeur d'Alene, where properties—especially those in desirable locations—are likely to retain their value due to continued demand and limited inventory​.

Rental property investors may find increased opportunities during election years, especially when interest rates are high. With rising borrowing costs, some potential homebuyers may opt to rent instead, boosting rental demand. For those who own rental properties or are considering entering the rental market, this shift can mean stronger cash flow and higher occupancy rates. In Coeur d'Alene, the appeal of the area to vacationers and those seeking short-term stays further supports the rental market, as the area draws people who may be hesitant to purchase until post-election clarity is achieved​.

Luxury property investors often operate with a unique perspective as well. Buyers in the luxury segment may be less sensitive to economic shifts or interest rate fluctuations, as they often have the financial flexibility to invest based on lifestyle preferences and long-term gains. This can provide a level of stability in markets like Coeur d'Alene, where luxury properties continue to attract out-of-state buyers regardless of short-term political uncertainties.

Ultimately, while election years can create temporary hesitations, savvy investors across various groups often use this time to assess the market for opportunities that align with their goals and risk tolerance. By focusing on long-term market fundamentals and understanding local dynamics, investors can navigate election cycles with strategies tailored to their investment style.

The Personal Factor
Ultimately, whether you should buy, sell, or invest is a personal decision influenced by factors beyond just the election. For those planning to live in their property for the long haul, short-term fluctuations might not matter as much. Sellers could still find motivated buyers in Coeur d'Alene, thanks to its ongoing appeal and consistent demand.

Final Thoughts
While the 2024 presidential election will certainly influence the real estate market, its effects may be temporary. In the case of Coeur d'Alene, local factors and the area’s natural appeal may mitigate some of the typical election-year volatility. Staying informed and partnering with knowledgeable professionals is key to navigating this market effectively.

Contact me today to discuss your real estate goals, and together, we can craft a strategy that aligns with the current market conditions. Whether buying, selling, or investing, I’m here to help you make confident decisions in 2024 and beyond.