Midterm Elections and Housing Concerns
With voters heading to the polls after Donald Trump’s second term, housing issues remain prominent amid rising costs. Experts note the market’s stagnation frustrates many Americans.
“The U.S. housing market is in hibernation,” said Joel Berner, senior economist at Realtor.com. He pointed out years of low sales figures and anticipated mortgage rate impacts.
Pete Carroll, executive vice president at Public Policy and Industry Relations at Cotality, emphasized the broader frustration from cost of living increases, including housing.
Housing as a Voting Issue
Housing affordability concerns are significant, with a Pew Research Center survey showing that 66% of adults worry about housing costs. This includes 76% of Democrats and 53% of Republicans. A Hometap survey revealed that 77% of homeowners are influenced by candidates’ positions on lowering costs.
Market Insights and Predictions
Experts predicted improved affordability by 2026 due to lower mortgage rates, but current rates exceed expectations. As of October 22, the 30-year fixed-rate mortgage reached 7.32%, up from 6.19% a year earlier.
The National Association of Realtors (NAR) reports that existing-home sales fell by 2.2% year-over-year, with inventory rising to 1.60 million units. The median home price increased to $417,500, signaling ongoing price growth despite declining sales.
Regional and New Home Market Trends
Affordability worsened in three regions—Northeast (-4.5%), Midwest (-3.1%), and South (-0.4%)—while the West saw a slight improvement (+1.0%). Prices for new homes fell, offering discounts to boost demand, yet sales decreased by 5.3% year-over-year.
Builders are curtailing construction amidst demand challenges but still pursue new projects.
Challenges for Buyers and Sellers
Buyers with cash or equity face favorable conditions as prices stabilize, yet those needing mortgages struggle with entry-level inventory amidst escalating living costs.
The market presents difficulties for sellers, with many buyers deterred by mortgage rates, increasing competition, and rising costs for builders. Investor activity has also diminished due to these conditions.
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