Realtor.com reports that many housing markets are paused in anticipation of the presidential election results. Hesitation to close is seen heavily in cities, and political affiliation plays no part in it, either. Both sellers and buyers are holding off, which may be sending mortgage rates down even further. Wealthy buyers will be the ones most affected by changes in taxes and the investment market, causing further hesitation. The worry of potential riots in cities are delaying closings, but deals are predicted to continue on in the relatively safer suburban areas.
"We are very, very much, at least in New York, on pause," says Lenz, who is based in New York City, but does deals throughout the country. "People want to invest in certainty."
It doesn't matter which candidate ultimately becomes the next U.S. president. Her clients, the majority of whom are Democrats, want to make sure they're not ultimately going to lose money on their purchases. And the year's upheavals, from the coronavirus to the resulting recession to the social justice protests that erupted over the summer, have left many on edge.
"The election is adding fuel to the fire, resulting in paused closings," says Lenz. "If this goes on for months, are we going to have a lot of unrest?"