Are Homebuyers Spooked by Recession Fears? Why Some Say Now’s the Time to Buy

With recession fears swirling, more than half of U.S. homebuyers are feeling the jitters—but for some, a rocky economy could be the golden ticket to homeownership.

A new quarterly survey from Realtor.com, reported by Investopedia, shows that 60% of prospective U.S. homebuyers expect a recession to hit within the next year. Yet, nearly 30% are betting that a downturn could make buying a home easier.

“Economic worries are real, but some buyers see a silver lining in tougher times,” said Michael Hull, chief economist at Realtor.com. The biggest draws? Lower mortgage rates and fewer rival buyers, which could create a buyer’s market.
The survey reveals that personal finances are a bigger concern than the broader economy for most. Over 54% of respondents said a recession wouldn’t derail their plans to buy a home, while just 15% felt it would play a major role. “For those itching to buy, life changes—like welcoming a new family member, landing a new job, or retiring—often outweigh short-term economic uncertainty,” Hull noted.

Still, the road to homeownership isn’t smooth. The top hurdle, cited by 44% of buyers, is the slim pickings in today’s housing market. While inventory has inched up recently, it’s still 16% below the historical average. Budget woes came in second, with 36% pointing to affordability as their main challenge, followed by concerns about credit and mortgage eligibility.

On the bright side, bidding wars aren’t a major issue. Only 8% of buyers said fierce competition would hold them back from making an offer.

So, is now the moment to jump in? For those ready to take the plunge, a potential recession could mean lower rates and less crowded open houses—but with tight inventory and budgets, it’s still a tricky market to navigate. One thing’s for sure: homebuyers are keeping a sharp eye on the economy as they plan their next move.