Today, housing affordability is hovering near all-time highs thanks to a combination of a number of factors including low mortgage rates and home prices, but there is still a bit of uncertainty in the market due to the election season.
While the majority of Americans say that November’s upcoming has no bearing on their decision to enter the housing market between now and then, a significant percentage also note that it would impact their decision either positively or negatively, according to a new poll from Harris Interactive. In all, just 4 percent say the upcoming election would actively lead them to buy a home.
Meanwhile, 12 percent said they would take the vote into consideration and it might cause them to delay a planned home purchase, while another 13 percent said they would certainly push back such a transaction until after the election is settled, the report said. At the same time, though, 53 percent said the election had no bearing on their purchase, and another 17 percent said they simply weren’t sure.
“It’s understandable that a considerable number of people say the upcoming election would give them pause for thought,” said Rick Allen, the chief operating officer for Mortgage Marvel. “There has been speculation that tax policies could change depending upon who wins. Some have even indicated that the longstanding deduction for mortgage interest could be eliminated.”
On a regional level, the South had the highest percentage of potential borrowers who noted the election and its associated uncertainty would delay their home purchase decisions, the report said. Another 12 percent said that it might do so. In the West, 61 percent of people said the election had no effect on their decision to buy a home.
When looking at age-related demographics, however, it seems that younger consumers are being more cautious, the report said. In all, 42 percent of males aged 18 to 34 said the election wouldn’t effect their decision, compared with 57 percent of males over the age of 55.
There is still a lot of uncertainty looming over the housing market in general, but experts say that prices should continue to appreciate through the end of the year and beyond, which may prompt more underwater homeowners across the country to consider selling.
Image: roger4336, via Flickr