E
lection Day is just around the corner in New Jersey, with early voting already underway across the state. Housing is a major concern for many voters, who are hoping that the next president will implement policies to address rising home prices and a lack of inventory on the market. But how does a presidential election actually affect residential real estate? According to experts, the impact is relatively limited.

    In some markets, there may be a slight slowdown in real estate activity during an election month, as buyers and sellers take a wait-and-see approach before making any decisions. However, this slowdown is typically not significant, and inventory levels and completed transactions may dip only slightly. Dutch Mendenhall, co-founder of RADD Companies, notes that people often wait to see what happens during an election year, but there's no concrete evidence to support the idea that real estate activity decreases significantly.

    Bankrate analyst Jeff Ostrowski agrees, saying that mortgage rates and listing prices are not typically affected by presidential elections. Any changes in home prices or interest rates are usually due to factors already at play in the market. "It's not like there's any appreciable change in the amount of homes for sale or the price of homes for sale because of the election," Ostrowski says.

    Both Democratic candidate Kamala Harris and Republican candidate Donald Trump have proposed policies related to housing, which could have an impact on the market in the long term. Harris' plan includes building 3 million new housing units, providing down payment assistance to first-time buyers, and stopping investors from buying and marking up housing. Trump's proposals include opening federal land for development, providing tax incentives to first-time buyers, and slashing inflation to reduce mortgage rates.

    Despite these proposed policies, Ostrowski advises potential homebuyers and sellers not to wait on the sidelines. "If you're prepared to buy a house, buy it," he says. "If you're prepared to sell a house, sell it." Home values are expected to continue increasing in the foreseeable future, making it a good time to purchase now and potentially refinance later for a lower interest rate.

    Ultimately, Ostrowski recommends taking a deep breath and looking back at previous elections, which have had minimal impact on the housing market. "The president gets way more blame or credit than they really deserve for economic performance," he says.