Good news, bad news: real estate and the 2024 presidential election

There are less than 100 days until our next presidential election — and its outcome will undoubtedly impact the Southwest Florida housing market. 

Historically, the stakes of a U.S. presidential election impact the housing market, both nationally and here in Southwest Florida. This year is no exception, given the already unprecedented events of recent weeks. 

In general, uncertainty rises among homeowners and buyers in the months leading up to this every-four-year ritual. No matter your decision at the ballot box, many voters are feeling uncertain, uneasy and unsure about the economy, inflation, crime and of course, housing.  

If you look over previous election years, especially this year, people tend to freeze, and the market feels the shiver of the “wait-and-see” approach. 

Go for the Gold, or Wait and See? 

My biggest advice amid the high drama of this presidential election season and its impact on the Southwest Florida housing market: stay steady and calm. Remember, buyers and sellers: no matter what is going on in the world, people still need a place to call home.  

The high degree of uncertainty has created a buyer’s market here in Southwest Florida, which I don’t think we’ll have for very long. A recent check of Realtor.com found 4,300 listings for Fort Myers and more than 21,000 for Lee County.  

In Naples, another 6,400 homes are up for grabs, with 8,000 being the grand total for Collier County.  

Mortgage interest rates remain high, but an anticipated Federal Reserve rate cut in September (the first of three quarter-point cuts by year’s end) is expected to bring some sorely needed relief, marking the first such interest rate reductions by the Fed in more than four years. 

In the meantime, some sellers (and builders) are offering their own incentives: a buydown at a lower interest rate. 

My advice to clients? Don’t go for the gold just yet – stay put. Wait and see how the election outcome plays out before making any new home decisions. 

VIEW SWFL LISTINGS 

A Buyer’s Market 

With more supply than demand in the local housing market, it’s never been easier for buyers to negotiate with builders and homeowners to get what they want in their future homes. If you're looking to buy, particularly a new construction home, you can ask that builder to pay down the home's interest rate, or even ask them to pay closing costs along with an interest rate buydown, along with a reduction in the asking price.  

At the end of each year, builders must show their net sheets, so they want to make deals at the end of the year. Negotiating is always an option. 

When buying, there are so many types of homes to consider. Older homes are a personal favorite of mine, as they often have beautiful landscaping and an awesome “Old Florida” feel that you can make your own. On the flipside, I really enjoy new construction communities and what they bring to the table in terms of amenities.  

There’s considerable interest right now – a lot of builders are bringing in indoor pickleball courts, basketball courts, volleyball, indoor basketball, and so many other in-house activities for residents – the community center is practically an all-inclusive resort, making it an enticing offer for new buyers. 

VIEW OLD FLORIDA LISTINGS 

The real estate market ebbs and flows during presidential election years. Think back to four years ago, when we also were dealing with the COVID outbreak amid yet another election year for the history books. But remember – people also need a place to call home. While it remains a buyer’s market, sellers who purchased their properties years ago remain in an enviable position – if you need to sell, there is still a profit to be made.  

The election is already playing a role in the housing market, and no matter what the outcome is, the effects will still play out. November isn’t that far away, and the market could swing more toward the seller’s favor once the election happens. 

Need a trusted real estate agent? Contact Aprile Osborne, chief vision officer of Call it Closed International Realty, at 239-220-8607.