Most Experts Are Not Worried About a Recession
A lot of buyers are watching the economy with caution right now. Since purchasing a home is a major financial decision, it makes sense that recession headlines would make people think twice.
In a recent LendingTree survey, nearly two out of three Americans said they expect a recession. About 74% also shared that the possibility is affecting how they handle their money.
The interesting part is that economists are not nearly as concerned.
Most Americans Expect a Recession, but Most Experts Do Not
According to an October report from the Wall Street Journal, only one in three economists believes we could see a recession in the next year. (see graph below):
If the experts are not sounding alarms, should buyers be stressed? At the moment, the economy is not in a recession, and there is no guarantee one is around the corner.
What we do have is uncertainty. The best way to move through that is by relying on solid information instead of fear. Understanding the facts gives you the ability to make clear, confident decisions.
Tips for Buying a Home When the Economy Feels Uncertain
The most helpful advice right now is simple. Pay attention to economic trends, but do not let them overshadow the reasons you need to move. Life changes, not headlines, drive most home purchases. Danielle Hale, Chief Economist at Realtor.com, explains:
“Well-prepared buyers who have been waiting on the sidelines are likely motivated by personal and lifestyle needs like growing families, new jobs, or retirement. And these considerations can outweigh short-term economic uncertainties . . . ”
Real-life timing matters more than the news cycle.
There is one important factor to keep in mind. If you plan to buy, your job stability matters. You should feel confident in your income and comfortable with the payments you will take on, even if the economy shifts.
If your employment is steady and you have savings set aside, experts say you do not need to pause your plans. Keep these reminders from Redfin economists in mind:
- Set a budget and stick with it. Make sure the payment fits your income and leaves room for unexpected expenses. Remember that costs like insurance and taxes can change over time.
- Use your position to negotiate. There are more homes on the market, and some buyers are hesitant. That gives you stronger negotiating power when working with sellers.
- Talk to lenders about payment options and rates. Ask about what you qualify for today and what your options are if rates decline later.
- If you own a home already, consider selling first. This can remove financial pressure and make your next move clearer.
And above all, surround yourself with the right support. As Bankrate puts it:
“Buying a home during a recession can sometimes be a good idea – but only for people who are lucky enough to remain financially stable . . . Be sure to enlist the help of an experienced local real estate agent. Not only do agents know their markets well, they will also work to get you the best deal in any given situation, including a recession.”
Bottom Line
Most Americans think a recession is coming, but most experts do not.
If your finances are stable, your job is secure, and you have a real need to move, you do not have to put your plans aside.
Thinking about your next step? Let’s talk through your options.
Vesta Schneider
Realtor®
Luxury Homes | Relocation | Investments
Keller Williams Realty McKinney
📞 302-530-7314
📧 vestaschneider@yahoo.com
