Homebuyers Say They're Ready to Buy Now—Even in a Recession. Here's Why

Chris DMello • Sep 15, 2022

Despite the recession and high interest rates, some home buyers are still planning to purchase a house in the next six months.


A recent survey revealed that 46% of would-be house buyers polled said they’re planning to go ahead and purchase a home in the next six months, even though recession fears are weighing on prospective buyers.


It's higher than the share of buyers who said they would buy a home in July 2019.


Despite these factors, mortgage rates and home prices have been rising steadily over the past few years.

In data released by the National Association of Realtors, Danielle Hale said that “some home shoppers are finding silver linings in the form of cooling competition”.


With inventory levels rising, and options becoming available in smaller, more rural markets—“this fall could bring relatively better chances to find a home within budget”.


Two in five buyers said that they believe the U.S. economy is already in a recession, but 42% of respondents also said that the recession would have “no effect” on their decision to buy a home.


In fact, around 27% of buyers are more likely to purchase products and services during a recession—that's an increase from last year’s 24.7%.

But there are also buyers who feel uneasy about buying in a recession. The share of respondents who say they're less likely to buy now because of the economy increased from 5% last year to 6.5%.


There are signs that buyers have become more competitive: fewer of them report losing out in bids, dropping from 12.6% to 9.4%.

About half of buyers also expressed interest in purchasing homes in small towns or rural areas.


But for some people, buying a home can still be hard work.


First-time buyers are facing some hurdles when it comes to buying a home: more than 12% of them reported being outbid.

Two in five first-time buyers also mentioned that their budget was a challenge to them while they were buying a home.

The median price for homes in the U.S., fell to $435,000 in August from its peak of $450,000 earlier this year.


Around 20% also said that their credit score was “interfering” with their plans to buy. (This is compared to 9.5% of all buyers).


By Chris DMello 30 May, 2024
Selling your house is a big decision. Your home is one of the biggest investments you’ve probably ever made, and it’s a place where you’ve created countless memories. That combo means there’s going to be a lot of emotions involved. You want someone who understands your perspective, knows what it feels like, and is an expert at helping homeowners just like you navigate the process of selling a home. That’s where a good listing agent, also known as a seller’s agent, comes in. Here are just a few skills you’ll want your agent to have. The Ability To Turn Something Complex into Something Simple Some agents are going to use big, fancy real estate terms to try and impress you. But you shouldn’t have to know all the industry jargon in order to understand what they’re saying. If anything, it’s an agent’s job to keep it simple, so you don’t get overwhelmed or confused. A great agent is going to be someone who is very good at explaining what’s happening in the housing market in a way that’s easy to understand. But they’ll take it one step further than that. They’ll explain what’s going on and, specifically, what that means for you. That way you’re always in the loop and it’s a lot easier to feel confident when you’re making a big decision. As Business Insider explains: “Maybe you have a better rapport with one of the agents you’re considering, or you just feel like they’re easier to approach. You’re going to be working closely with this person, so it’s important to choose an agent you’re comfortable with.” A Data-Based Approach on How To Price Your House While it may be tempting to pick the agent who suggests the highest asking price for your house , that strategy may cost you. It’s easy to get caught up in the excitement when you see a bigger number, but overpricing your house can have consequences. It could mean your house will sit on the market longer because the higher price is actually turning away buyers. Instead, partner with an agent who’s going to have an open conversation about how they recommend you should price your house. They won’t throw out a number just to win your listing. A great agent will back up their number with solid data , explain their pricing strategy, and make sure you’re both on the same page. As NerdWallet explains: “An agent who recommends the highest price isn’t always the best choice. Choose an agent who backs up the recommendation with market knowledge.” A Fair, but Objective Negotiator The home-selling process can be emotional, especially if you’ve been in your house for a long time. But that sentimental tie can make it harder to be objective during negotiations. That’s where a trusted professional can really make a difference. They’re skilled negotiators who know how to stay calm under pressure. You can count on them to handle the back-and-forth and have your best interests at heart throughout the process. Not to mention, they’ll be able to rely on their market expertise and what they’re seeing work in other transactions to offer the best advice possible. As Rocket Mortgage explains: “Whether this is your first or third time selling a house, listing agents work to help make the home selling process smoother and less stressful. These real estate professionals know the ins and outs of the industry and can help you secure the best deal.”
By Chris DMello 28 May, 2024
Thinking about buying a home or selling your current one to find a better fit? If so, you might be wondering what’s going on with home prices these days. Here’s the scoop. The latest national data from Case-Shiller and the Federal Housing Finance Agency (FHFA) shows they’re going up (see graphs below):
By Chris DMello 23 May, 2024
While renting may be less expensive in some areas right now, there are two big benefits homeownership provides that renting can’t. ​ Owning a home means you get to say goodbye to rising rents and hello to stability . It also gives you the chance to gain equity as home values rise over time. If you’re ready to learn more about the perks of owning a home, let’s chat .
By Chris DMello 21 May, 2024
If you’re thinking of making a move this year, there are two housing market factors that are probably on your mind: home prices and mortgage rates . You’re wondering what’s going to happen next. And if it’s worth it to move now, or better to wait it out . The only thing you can really do is make the best decision you can based on the latest information available. So, here’s what experts are saying about both prices and rates. 1. What’s Next for Home Prices? One reliable place you can turn to for information on home price forecasts is the Home Price Expectations Survey from Fannie Mae – a survey of over one hundred economists, real estate experts, and investment and market strategists. According to the most recent release, experts are projecting home prices will continue to rise at least through 2028 (see the graph below):
By Chris DMello 16 May, 2024
When you’re planning a move , it’s normal to wonder where you’ll end up and what your future home is going to look like. Maybe you’ve got a specific picture of that house in your mind. But unless you came into this process knowing you want to buy a newly built home, you may not have pictured new home construction. A trusted real estate agent can help walk you through these two reasons you may want to reconsider that. 1. Adding Newly Built Homes Could Give You More Options There are two types of homes on the market : new and existing. A newly built home refers to a house that was just built or is under construction. An existing home is one a previous homeowner has already lived in. Right now, the inventory of existing homes is tight. But there may be options for you on the new home side of things. Data from the Census and the National Association of Realtors (NAR) shows that newly built homes are a bigger part of today’s housing inventory than the norm (see graph below):
By Chris DMello 14 May, 2024
If your needs have changed, now’s a great time to sell and get the features you want most. Many buyers are eager to move between the school years, so you may see a faster sale, multiple offers , a higher final sales price , and more. If you want to get your house ready for a summer listing, let’s connect .
By Chris DMello 09 May, 2024
If you're thinking of buying or selling a house, it's important to know it doesn't just impact you—it helps out the local economy and your community, too. Every year, the National Association of Realtors (NAR) puts out a report that breaks down the financial impact that comes from people buying and selling homes (see visual below): 
By Chris DMello 07 May, 2024
Having a hard time finding a home in your budget? ​ Builders may have a solution that can help. Builders are shifting their attention to what buyers want most right now – smaller , more affordable homes. If you want to see what’s available locally and in other areas nearby, let’s connect and explore your options together.
By Chris DMello 03 May, 2024
Thinking about selling your house ? If you are, you might be weighing factors like today’s mortgage rates and your own changing needs to figure out your next move . Here’s something else to consider. According to the latest Home Purchase Sentiment Index (HPSI) from Fannie Mae, the percent of respondents who say it’s a good time to sell is on the rise (see graph below):
By Chris DMello 30 Apr, 2024
If you’re thinking about buying a home , chances are you’ve got mortgage rates on your mind. You’ve heard about how they impact how much you can afford in your monthly mortgage payment, and you want to make sure you’re factoring that in as you plan your move . The problem is, with all the headlines in the news about rates lately, it can be a bit overwhelming to sort through. Here’s a quick rundown of what you really need to know. The Latest on Mortgage Rates Rates have been volatile – that means they’re bouncing around a bit. And, you may be wondering, why? The answer is complicated because rates are affected by so many factors. Things like what’s happening in the broader economy and the job market, the current inflation rate, decisions made by the Federal Reserve, and a whole lot more have an impact. Lately, all of those factors have come into play, and it’s caused the volatility we’ve seen. As Odeta Kushi, Deputy Chief Economist at First American, explains : “Ongoing inflation deceleration, a slowing economy and even geopolitical uncertainty can contribute to lower mortgage rates. On the other hand, data that signals upside risk to inflation may result in higher rates.” Professionals Can Help Make Sense of it All While you could drill down into each of those things to really understand how they impact mortgage rates, that would be a lot of work. And when you’re already busy planning a move, taking on that much reading and research may feel a little overwhelming. Instead of spending your time on that, lean on the pros . They coach people through market conditions all the time. They’ll focus on giving you a quick summary of any broader trends up or down, what experts say lies ahead, and how all of that impacts you. Take this chart as an example. It gives you an idea of how mortgage rates impact your monthly payment when you buy a home . Imagine being able to make a payment between $2,500 and $2,600 work for your budget (principal and interest only). The green part in the chart shows payments in that range or lower based on varying mortgage rates (see chart below): 
More Posts
Share by: