Jana's Take on What the 2024 Election Means for Kansas City's Real Estate Market

After the unsurprising "reality tv show" that was the recent Presidential Debate, I thought it might be high time to talk about how this election, both national, state and local (!!) will impact our Kansas City Real Estate Market. 

So, hey there! My name is Jana Jeffery and I'm a real estate broker in Kansas & Missouri servicing the Kansas City metro area. And, I have opinions. Just a couple. Ready? Buckle up!

The upcoming 2024 election cycle is set to significantly impact real estate sales, with some clear and controversial outcomes on the horizon. With both presidential candidates being polarizing and well, ready for retirement (🙏), the national focus may overshadow but not diminish the critical influence of local elections on the housing market. Local candidates and races will likely have a more significant impact on housing through regulatory changes, unemployment factors, and local economic opportunities and challenges.

Market Uncertainty:

• Consumer Confidence: As we edge closer to election day, expect a palpable tension among buyers and sellers. The uncertainty surrounding potential progressive or conservative changes in leadership and policy at the national level will create hesitancy, potentially stalling transactions. This environment is ripe for dramatic market shifts, where confidence—or lack thereof—will play a pivotal role in shaping market activity.

Interest Rates:

• Federal Reserve Actions: The looming threat of interest rate hikes by the Federal Reserve is a hot topic. In an election year, the Fed’s actions are under intense scrutiny. Any move to raise rates further could cool the housing market even more significantly. However, a conscientious administration might advocate for policies that keep rates low, promoting affordability and encouraging homeownership, especially among first-time buyers and middle-income families.

Stock Market Volatility:

• Investment Behavior: The election’s impact on the stock market will be profound. Historical patterns show increased volatility during election years, and 2024 is likely to be no exception. Sharp swings in the stock market will influence consumer wealth and confidence, directly affecting their ability to invest in real estate. This volatility will be a critical factor, making the market unpredictable and ripe for strategic maneuvering.

Housing Policies:

• Policy Proposals: With polarizing candidates proposing vastly different housing policies, if any, the election outcome will either boost or hinder the market. Initiatives aimed at increasing affordable housing, expanding homeownership opportunities, and providing tax incentives for home improvements could lead to a post-election surge in sales. Conversely, policies perceived as restrictive or economically damaging might stifle growth.

Consumer Sentiment:

• Political Climate: The charged political atmosphere will polarize consumer sentiment. An election result perceived as positive for economic growth and social equity could unlock a wave of market activity, while a contentious or divisive outcome might lead to widespread caution and a slowdown in transactions. The election’s influence on consumer sentiment cannot be overstated, as it will set the tone for market behavior.

Local Impacts:

• Local Markets: The election’s impact will be felt unevenly across regions, with local candidates and races playing a critical role. Urban centers with diverse economies and progressive political leanings might be more resilient, while areas heavily dependent on conservative policies might experience heightened sensitivity to political changes. Local regulatory changes, socioeconomic factors, and economic opportunities will significantly influence housing markets. Cities and states with strong local leadership focused on affordable housing, economic development, and social equity will likely see more robust housing markets.

Long-term Expectations:

• Consumer Sentiment: The upcoming election will significantly shape consumer sentiment and local regulations, impacting the housing market. A conscientious candidate advocating for social equity and sustainability could boost consumer confidence, leading to increased market activity and a positive housing outlook. Local governments that prioritize affordable housing, favorable zoning laws, and sustainable development are likely to see heightened demand and market growth. Conversely, areas with restrictive policies may experience stagnation and cautious consumer sentiment, leading to slower market activity. Buyers and investors will closely watch local government actions, with proactive local policies driving positive trends. Ultimately, while national outcomes matter, local regulations and consumer confidence will be key determinants of the housing market's future.

Strategic Responses:

• Buyers: Smart buyers will navigate this turbulent period by locking in mortgage rates ahead of potential hikes or waiting strategically for post-election market corrections. Progressive policies aimed at improving affordability and accessibility could make homeownership more attainable for many.
  
  
• Sellers: Sellers will need to act decisively, potentially accelerating listings to capitalize on pre-election demand or waiting for post-election clarity. Expect aggressive pricing strategies and competitive marketing as sellers vie for a limited pool of buyers in an uncertain environment.
  
  
• Investors: Real estate investors will need to be particularly astute, shifting focus to stable or undervalued markets and anticipating policy changes. Progressive policies promoting affordable housing and green initiatives could open new investment opportunities, making 2024 a pivotal year for investment decisions. Your local candidate races will be most impactful to pay attention to!

In my opinion, while the 2024 presidential election will undoubtedly influence the real estate market, local elections and candidates will play an even more critical role. This period of uncertainty and potential upheaval will force all market participants to rethink their strategies and brace for significant changes. Whether this leads to a boom or a bust will depend heavily on the election outcomes and the subsequent economic policies implemented. Buckle up, because the real estate market is in for a transformative ride!

To obtain a list of candidates running for state and local goverment and political office in the Kansas City regional area (Kansas and Missouri), please email info@royalfoxkc.com.

This content is the opinion of Jana Jeffery, residential and commercial real estate broker and managing broker of Real Broker, LLC in Kansas and Missouri and are in no way a reflection of the beliefs or opinions of Real Broker, its agents, affiliated businesses, leaders, haters, or closeted lovers or any of the authors' affiliated companies, professional partners, vendors, clients, friends, family, pets, or infestations. It's simply one woman's well-educated, independent/liberal-leaning opinion. So, don't come at me. lol ;) kthxluvubye ♥