Will the Market Heat Up Post-Election? Here’s What to Expect

Discover the latest market trends and how rate cuts may impact your plans.

After the summer real estate lull, I usually look forward to a lively September and October to carry us through the end of the year. Not this time. Instead, the market stayed in a slump through September and well into October, despite some rate drops that typically boost activity. It felt like the usual seasonal rhythm had gone out the window.

Then, something unusual happened. We saw a last-minute surge in activity about 7–10 days before the election. This blindsided us, as nearly every buyer we spoke to had the same line: “We’re waiting until after the election.” Fair enough—this isn’t my first election cycle, and that sentiment has been a common thread in the last four elections since I’ve been in business.

That late burst of demand showed us something: buyers are out there, and when they decide it’s time, they’ll move—even with rates higher than they were just a month ago. The result? Our team secured seven pending deals across both buyers and listings.

In case you missed it, the Fed cut rates for the second time in two months. Will this change much? Hard to say. What it might do is give people a bit of optimism by providing some positive news for once. With the election now in the rearview, I can envision a scenario where some of the sales that went quiet in September and October come to life before the end of the year.

Looking ahead, the Fed is expected to maintain its cautious approach, with one more possible rate cut in December. Should inflation continue to decline, this trend could support further reductions in borrowing costs, making homeownership slightly more accessible. However, any signs of economic overheating or policy changes could quickly reverse this trend, prompting the Fed to pause cuts. Stay tuned—it’s going to be an interesting close to 2024!