The housing market is in a holding pattern, with many potential first-time homebuyers waiting to see what the future holds. A recent survey conducted by Redfin, using data from Ipsos, found that a significant portion of prospective buyers are putting their home purchase plans on hold. The reason? They’re waiting to see if Vice President Kamala Harris’s proposed $25,000 down payment assistance program becomes a reality.
The survey, which polled 491 likely first-time homebuyers in September, revealed that 26.1% of respondents are specifically waiting to see how Harris’s housing affordability initiative unfolds. The number climbs to 32.7% among Harris supporters, while 21.6% of Trump supporters expressed interest in the program.
The housing market’s stagnation, with only about 2.5% of U.S. homes changing ownership from January to August of this year, is a stark contrast to previous decades. Despite recent drops in mortgage rates due to the Federal Reserve’s rate cuts, the market hasn’t seen a significant surge in activity.
While the election and its potential impact on housing affordability are major factors, personal financial preparedness also plays a significant role. The survey found that 30.3% of respondents are still building their savings before committing to a home purchase, while another 28.9% cited personal or family timing considerations as their reason for delaying their purchase.
Redfin agent Lindsay Garcia, quoted in the report, highlighted the uncertainty surrounding the election: “Buying a home can be scary, especially if it’s your first time, you’re worried about the election and you’re not sure if the economy is going to get better or worse.”
The survey also pointed to broader election-related concerns, with 23% of respondents planning to wait until after the presidential election to assess the economic climate.
While Harris’s housing proposals are grabbing headlines, Trump’s housing proposals have caught the attention of 15.9% of potential buyers. Immigration policy has also emerged as a factor for some buyers, with 12.2% expressing concerns about long-term residency rights based on potential policy changes.
Beyond campaign promises, buyers are also monitoring various forms of assistance and market shifts. Equal portions of respondents (18.3%) are waiting for either Fed interest rate cuts or federal affordable housing initiatives. Meanwhile, 23.6% are keeping an eye on potential affordable housing programs at the state and local levels.
The survey highlights the complex landscape facing potential homebuyers. They’re carefully considering personal finances, policy proposals, and market trends before making the leap. The upcoming election and its potential impact on housing affordability are key considerations for many, particularly those looking to leverage government assistance programs.
This data suggests that the housing market is in a state of suspended animation, with buyers waiting for the dust to settle before making their moves. It’s a fascinating snapshot of how political uncertainty, economic conditions, and personal factors are shaping the housing market.