As election season rolls in, there’s a lot of talk about how big national decisions—and local ones—might impact our wallets, especially in the real estate market. Will home prices skyrocket or plummet? Could mortgage rates get better or worse? And what about property taxes? In the Puget Sound area, the truth is a little simpler than it may seem. Here, we’ll dive into a few of the common myths and clarify what really happens, helping ease any worries for buyers, sellers, and homeowners.
Truth: Mortgage rates aren’t directly tied to who’s in the Oval Office—or your local city council, for that matter. Rates are driven more by economic factors, like inflation, employment trends, and the Federal Reserve’s decisions. While the Fed doesn’t set mortgage rates, it does influence them indirectly by adjusting short-term interest rates.
After an election, there may be some short-term bumps in rates as markets adjust to expected policy changes, but it’s usually subtle. Long-term, the rates tend to respond more to broader economic forces. So, whether you’re hoping for a particular outcome, don’t expect a win or a loss to drastically change rates in the blink of an eye.
Takeaway: Even in times of change, mortgage rates move more with economic trends than with political shifts.
Truth: While changes in leadership might make headlines, Washington’s housing market tends to remain resilient, especially in desirable areas like Seattle, Bellevue, and across Puget Sound. Local elections—think city councils or county commissioners—may have a more direct impact on real estate. Decisions around zoning, housing policies, and property taxes do affect your neighborhood but rarely lead to a crash. Even national changes, like a shift in tax policy, typically don’t impact the Pacific Northwest’s strong demand and limited supply for housing in a significant way.
In truth, home values in our region are likely to remain stable and even grow, given the tech presence and the attractive lifestyle of the PNW. Plus, when there’s talk of slowing, what often happens is a cooling to a more balanced market rather than a true decline.
Takeaway: Changes in government don’t equate to changes in home value here. The market will likely hold strong due to the desirability of the region.
Truth: While it’s true that major policies often target urban centers, decisions from local officials can have a big effect on smaller areas, too. For instance, policies to encourage or restrict development can affect home values, traffic, and amenities, even in the suburbs. When it comes to housing markets, each area has unique characteristics—urban, suburban, or rural. However, policies aimed at economic growth or local infrastructure improvements can have a positive ripple effect on nearby real estate markets, often improving local amenities and the area’s appeal.
Takeaway: Local decisions in both cities and towns can shape property value trends and lifestyle factors in the surrounding regions, often for the better.
Truth: While some people are cautious about selling or buying around an election, real estate in the Puget Sound area continues its cycle regardless of the political climate. Waiting for election results can sometimes make sense if you’re on the fence, but often, it’s timing in the year or personal circumstances that matter most.
Historically, Seattle, Tacoma, and nearby regions see steady demand, which means that waiting may not impact your home’s value as much as you might think. If the market is competitive now, it’s likely to stay that way unless there are major economic changes beyond the election itself.
Takeaway: The best time to sell is often when you’re ready, not just when the election is over.
Truth: Property taxes are set locally and vary based on county assessments rather than federal or state elections. Local ballot measures can increase or reduce these taxes, but they usually reflect voter decisions at the community level, like funding schools or parks, which add value to the neighborhood over time. The upcoming elections might introduce some policies impacting property taxes, but changes are generally gradual and based on voter-approved initiatives.
Takeaway: Property taxes are more affected by local decisions and voter choices than by changes in federal leadership.
Whether you’re a homeowner, buyer, or seller, remember that the Puget Sound real estate market tends to be resilient. Here are a few things you can rely on:
Elections bring changes, but whether you’re buying, selling, or staying put, staying informed about the real estate market—and focusing on what’s happening locally—can help ease worries about market shifts. And remember, as your local guide in the real estate world, I’m here to help you make sense of it all, find the upsides, and work toward your goals no matter which way the votes fall.
Hey there! I’m Maureen, a community blogger and Real Estate Broker at American Classic Homes Real Estate in the Pacific Northwest. Here to help you find your perfect home and share tips on living your best life in the PNW. Let’s come home together to the Pacific Northwest!
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