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In comparison, the average sales price was $340,600 just five years ago.
During certain times such as in a recession you may see dips in housing prices.
That said, the market generally resets itself eventually and prices continue to rise over time.
This is regardless of who happens to be president.
Thats not to say that the president has no effect on the housing market.
The president might not always have a direct impact, however.
GOBankingRates spoke with two financial planners, Joseph Favorito and Daniel Cabrera, to get their thoughts.
Heres what a Kamala Harris presidency might mean if you plan to buy a house in 2025.
Favorito believes that policies would play a greater role in the economy than the housing market specifically.
In other words, the impact would be there, just less noticeable.
But the rates themselves can definitely impact your decision to buy property next year.
If rates go up, it reduces home affordability and prices decline, Cabrera said.
When rates drop,home affordability increasesand prices go up.
The Federal Reserve controls rates, not any politician.
Rather, the Federal Reserve sets the effective funds rate currently 5.33%.
Mortgage rates have risen over the years.
Recently, the average rate on a 30-year, fixed-rate mortgage has hovered around 5% to 7%.
A decade ago, that same loan had a rate closer to 3% or 4%.
Historically low mortgage rates and limited housing supply have fueled the recent sellers market, Cabrera said.
If rates rise or inventory opens up, we may see prices moderate.
Ifsupply increases and demanddrops, it puts downward pressure on prices.
New home construction and existing home inventory drive supply, which politicians have little control over.
Recessions where unemployment spikes cause demand and prices to drop.
Again, politicians dont directly control the job market or personal incomes.
Those who could afford property could find great deals at that time and those historically low rates.
There hasnt been a dip like that since.
Strong employment supports housing demand, Cabrera said.
So, the job market would need to remain stable or improve for a healthy 2025 market.
In 2022, roughly 370,000 such individuals saw increases in their wages.
As for the national unemployment rate, it stood at around 4.3% as of July 2024.
During the Great Recession, it went up to about 10%.
In 2020, during the height of the COVID-19 pandemic, it rose to nearly 15%.
Housing tends to be very regional, Favorito said.
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