JACKSONVILLE, Fla. – With the 2024 election season in full swing, News4JAX is looking at the role that financial uncertainty is playing in the sluggish real estate market in North Florida.
According to the Northeast Florida Association of Realtors (NEFAR) August 2024 report, the median sales price for single-family homes in six counties tracked by the group dropped 3.7% to $383,990 and homes became more affordable. Month to month, closed sales in the six-county region dropped 8.0% to 1,777. Pending sales plummeted 30.6% to 1,295, while new listings decreased 6.5% to 3,097.
RELATED: At least 2.4 million Florida families spend more than 30% of income on rent, utilities: report
According to recent social media posts, uncertainty surrounding who will be America’s next president is causing some homebuyers to adopt a “wait and see” approach to buying.
MORE: Having a family is expensive. Here’s what Harris and Trump have said about easing costs
A recent survey conducted by Veterans United Home Loans, which polled 900 prospective homebuyers, highlights the influence of the election on their purchasing decisions:
• 60% of those planning to buy a home within the next three years say the election is a factor in their decision.
• 43% say they plan to wait until after the election is over to make a move.
Some industry experts on social media advise homebuyers to act now to avoid the after-election rush. One post on “X” (formerly Twitter) reads: “If you’re on the fence and worried about the election, do not—it’s going to benefit you.”
So is it better to buy now, or wait until after the election is over to make what many consider to be the biggest purchase of their lives?
And is the election to blame for month-to-month sales which have plummeted in North Florida according to the latest statistics?
Round Table Realty broker Howard Flaschen said the real estate market is experiencing a roller coaster-like cycle but there are other financial factors at play.
“So interest rates are starting to tick down, inventory is starting to tick down. But you’ll notice I’m doing this as I say that (motioning the roller coaster going up) because what happens is, as that happens, buyers don’t just immediately go like this (motioning down) They’re filled with fear. For how many years now have they been beaten over the head with high interest rates, high prices and all these things.”
Flaschen said that uncertainty around interest rates and inflation as well as concerns about affordability are the main metrics home buyers are considering.
Flaschen said that anxiety over who will become president is real. He predicts that 2025 will offer home hunters the best deals in years.
“I truly believe 2025 is primed to be the year that buyers get the best deal they’ve seen in the last five years,” he adds.
As housing remains a critical issue for young voters, both major political candidates have addressed it in their platforms. Vice President Kamala Harris has proposed building 3 million new homes and offering $25,000 in down payment assistance. Meanwhile, former President Donald Trump has suggested reducing housing costs by deporting undocumented immigrants.