Residential Real Estate News
Future Homebuyers Sitting on Sidelines Until After U.S. Presidential Election
Political, Economic Uncertainty in America Delaying Homebuyer Decisions
According to national property broker Redfin, the typical monthly housing payment for a U.S. homebuyer was $2,671 during the four weeks ending July 21, 2024, marking the lowest level in four months and a $166 decrease from the record high reached at the end of April 2024. This decline in housing payments is attributed to falling mortgage rates, which have dropped to an average of 6.77%, the lowest since March, as inflation eases.
Homebuyers also have more options, with new listings up 6.1% year over year and many properties sitting on the market longer, giving buyers leverage in negotiations. Despite lower payments and improved inventory, homebuyer activity remains sluggish. Pending home sales are down 5.7% year over year, the sharpest decline in nearly nine months, while mortgage-purchase applications have dropped 15%, including a 4% week-over-week dip.
Many potential buyers remain on the sidelines, primarily because home prices are still near record highs, even as mortgage rates ease. Additionally, Redfin agents report that some buyers are waiting until after the upcoming presidential election to avoid making a significant financial decision amid political and economic uncertainty.
"I'm working with several buyers who are waiting for the election before they make a move," said Matthew Purdy, a Redfin Premier agent in northern Colorado. "Some of them say they'll only buy a home if their candidate wins. Others are waiting because they feel the economy and housing market are shaky, and hope it will improve after the election. I am working with a few foreign buyers who are wary about investing any more money in U.S. real estate before they see who takes office."
