A LOOK AT HOW PRESIDENTIAL ELECTIONS ACTUALLY IMPACT REAL ESTATE MARKETS
Every four years, the presidential election seems to stir anxiety about real estate in the United States, leading to familiar questions:
- What will happen to housing prices?
- Will interest rates go up or down?
- Should I wait to buy or sell?
However, an analysis of recent election-year and post-election-year home sales data appears to tell us that we don’t have so much to worry about.
Here’s a snapshot of what we’ve learned from sources such as the U.S. Department of Housing and Urban Development (HUD), the National Association of Realtors (NAR), and the Federal Home Loan Mortgage Corporation (Freddie Mac):
- In nine of the past 11 elections, home sales increased the year after the election. The two post-election downturns occurred after the 1980 and 1988 cycles.
- In eight of the past 11 presidential elections, 30-year mortgage rates decreased during the four-plus months (July-November) leading up to the election. The exceptions were 1980, 1992, and 2016.
- In seven of the past eight elections, NAR reports that median home prices increased after the election.
And how has Northern Colorado responded to election impacts?
When it comes to home prices, local markets have tended to shrug off election uncertainty. In Fort Collins, prices appreciated in 10 of the past 11 election years; Greeley experienced appreciation in eight of 10 elections (1980 data was unavailable), and Boulder experienced a clean sweep – 11 out of 11.
In the year following elections, Fort Collins prices appreciated after nine out of the past 11 elections; Greeley prices appreciated seven out of 10 (1980 data was not available), and Boulder prices appreciated 10 out of 11 times.
The safe conclusion: Elections have had minimal, if any, impact on residential real estate activity.
Contact your broker to discuss how the upcoming presidential election might apply to your situation.
For a closer look at how elections affect real estate markets, please explore the charts below.
QUANTUM LEAP? GRANT DOLLARS CEMENT COLORADO'S STATUS AS A TECH HUB
If quantum technology – widely viewed as the foundation for a new surge of computing advancements – is going to make a commercial splash, chances are Colorado will be one of the places where the action is.
The U.S. Department of Commerce recently awarded a $40.5 million grant to Elevate Quantum, a consortium of schools, private businesses, and economic development organizations that is centered in Colorado.
As a result of the federal grant, Elevate Quantum is due to receive an additional $87 million in public funding from the member states of Colorado, New Mexico, and Wyoming. Economic development studies project that quantum technology could generate more than $1 billion in economic impact for the state, creating about 10,000 jobs.
It’s believed that quantum technology can make a real-world impact in areas such as enhancing computing speed, improving sensors for monitoring the environment, and securing data transmission.
Colorado was previously designated by the federal government as a hub for quantum research in the U.S., and the new grant is seen as a step toward making the state a global hub. While much of the activity around quantum research is currently in the Denver-Boulder area, the influx of grant monies could have a ripple effect on the work of the Colorado-Wyoming Climate Resilience Engine, a Fort Collins-based program funded by the National Science Foundation.
“We look forward to collaborating with the Elevate Quantum initiatives,” said Emily Wilson, Special Projects Director for the recently funded CO-WY Engine, an initiative led by Innosphere Ventures. “Our CO-WY Engine’s tech roadmap is designed to adapt and pivot, and future work with quantum and fusion energy are both on our radar, so this funding from EDA is pivotal to putting our region on the map in being a global leader in quantum.”
SEPTEMBER IS THE PERFECT MONTH TO EXPLORE NORTHERN COLORADO
As we say goodbye to summer and hello to fall, take advantage of our gorgeous weather to get out of town and enjoy some of the things that have drawn so many of us to Northern Colorado. A visit to Soapstone Prairie Natural Area, an important archeological site 25 miles north of Fort Collins, easily helps you envision the area in the 1860s when native tribes roamed and Fort Collins and Greeley were founded. Keep scanning the prairie, and there’s a good chance you’ll see pronghorns or bison.
Pack a picnic for an afternoon in the Poudre Canyon, exploring Colorado’s only nationally designated Wild and Scenic River. You can make the loop from Ted’s Place (junction of Hwy 287 and CO 14) to Stove Prairie then east to Rist Canyon and back to Hwy 287. There are places to hike or stop to put your feet in the river while eating lunch.
Traveling west on Hwy 34 through the Big Thompson Canyon to Estes Park through Glen Haven (LCR 43) has rewarded generations with awe-inspiring views of Longs Peak and Mount Meeker. These sights greet you full force at the top of the switchbacks. Treat visitors and the family to fresh cinnamon rolls from the Glen Haven General Store as you fuel up to walk around Lake Estes or the downtown Riverwalk. Note that reservations to the renowned Rocky Mountain National Park are required until October 20.
Purchasing a home is typically the largest financial decision a person can make, and understanding the market is critical. Our interactive market reports are comprehensive and up to date. The reports include sales, days on market, employment data, and more. And best of all, the reports are available at your fingertips and accessible from any device.
REAL ESTATE BY NUMBERS
- $5.22 million. Price that Journey Homes paid to buy 22 acres in The Ridge, a planned housing development located near the interchange of Interstate 25 and Colorado Highway 402 in Johnstown. Journey plans to build a 378-unit housing complex.
- 277. Number of acres for Poudre Heights, a proposed new multi-use development in west Greeley. The Greeley Planning Commission recently approved project plans, including industrial, commercial, and residential uses. The site is located north of West 10th Street, west of 101st Avenue, and east of Missile Silo Road. Developers have proposed up to 1,200 new homes.
- $4.99 million. Price that investors paid for two commercial properties in downtown Windsor. One of the buildings, located at 201-205 Fourth St., is currently occupied by multiple businesses, including the Hearth restaurant. A second building, located at 522 Main St., is occupied by Fransen Pittman Construction.
- $1.59 million. The median sales price for homes sold in Boulder during June, up 4.4 percent over June 2023. Nationally, the median sales price was $426,900 in June.
- 715,000. Square footage of a new data center that Meta Platforms Inc. plans to build in Cheyenne. The project is proposed for a 960-acre site in the High Plains Business Park. The estimated investment for the facility, due to open in 2027, is $800 million. Meta Platforms is Facebook’s parent company.
- 344. Number of apartments proposed for The Landing at Lemay development, planned for a 17-acre site in northeast Fort Collins near the intersection of East Vine Drive and North Lemay Avenue. The developer paid $4.49 million for the property in May.
- $19.5 million. Price that Aims Community College paid for a development site to build the school’s 55,000-square-foot Aircraft Maintenance Training Center. The property is located on the grounds of the Northern Colorado Municipal Airport.
- $18.6 million. Price that a Denver-based investor paid for the 102-unit Eastglen Apartments, located at 630 Lashley St. on the east side of Longmont. The complex was built in 1996.
- 916. The average size of new rental apartments built in the United States in 2023, an increase of 27 square feet – 3 percent – over 2022. RentCafe reported the figure.