HUNTSVILLE, Ala. - Every presidential election year impacts the real estate market. Recently, one local real estate company published a blog about the impact President-elect Donald Trump could have on our housing market.
The market is impacted by political climate during election year because many people fear the unknown.
"With any presidential election, real estate really boils down to consumer confidence. When consumers are not confident they don't make a big purchase. This is the biggest purchase of anyone's life, or the sell of their life. So when they're not feeling stable or comfortable, they're worried about the economy, they don't make a move. This happens with every election so it's not just Trump," said Amanda Howard.
Experts believe there will still be growth in Madison County despite rising mortgage rates. Rates are projected to rise nearly a whole percentage point at the end of 2017.
"It was really needed for the real estate market because we've had the prices going up. Everything is stabilized this year and it's coming around to that we really needed the interest rates to go up. They're still at historic lows," said Howard.
Howard told WHNT News 19 those low rates are something buyers need to think about. If you wait too long, you'll be looking at buying a home in a different price point.
"They can afford more home if they purchase while the interest rates are still low," said Howard.
For every one percent rate increase, buyers lose 11 percent of buying power which means mortgage payments will be higher.
"If somebody was purchasing a $200,000 home, they now may only want to be looking at a $180,000 home to be able to stay in that same payment that they feel comfortable with," explained Howard.
As buyers purchase homes of less value, those selling are expected to lose about 30 percent of buyers by the end of 2017.