Homebuyers Are Watching the Economy—But Should You Be Worried?

Buying a home is one of the biggest financial decisions most people make, so it’s natural to keep an eye on the economy. Lately, media talk about a potential recession has caused some prospective buyers to rethink their plans.

A recent LendingTree survey found that nearly two-thirds of Americans expect a recession, and 74% say these concerns are affecting their financial choices.

But here’s the reassuring news: experts aren’t nearly as worried.

Most Americans Expect a Recession, but Experts Disagree

According to an October Wall Street Journal report, only about one-third of surveyed economists believe a recession could happen in the next 12 months. So, if the experts aren’t overly concerned, does that mean you should panic? Not necessarily. We aren’t in a recession right now, and there’s no guarantee one is coming.

What we do have is uncertainty—and the best way to navigate it is by focusing on facts rather than fear. Make informed decisions by gathering the right information for your situation.

Tips for Buying a Home During Economic Uncertainty

While it’s smart to follow economic trends, your real-life needs should remain the priority. Economic conditions change, but the reasons people buy homes—like growing families, new jobs, or retirement—remain the same.

“Well-prepared buyers who have been waiting on the sidelines are often driven by personal and lifestyle needs, which can outweigh short-term economic uncertainties.”

In other words, timing your move around your life—not the news cycle—is what truly matters.

Job Stability Matters

If you’re considering buying now, your job stability is key. You should feel confident in your income and your ability to comfortably cover mortgage payments, even if the economy shifts.

If your finances are solid and you have a safety net, experts say you don’t have to wait. Here are some practical tips from Redfin economists:

• Set a budget and stick to it: Avoid overextending yourself. Make sure your payments are manageable and your savings can cover unexpected costs, including rising home insurance or taxes.

• Negotiate: With more homes on the market and some buyers pulling back, you may have more leverage to negotiate a better deal.

• Be strategic with mortgage rates and payments: Consult lenders to understand what payments and rates you qualify for now, and explore options if rates drop in the future.

• Consider selling before buying: If you already own a home, selling first can reduce financial pressure and clarify your budget for your next purchase.

Most importantly, surround yourself with a trusted team. Bankrate emphasizes:

“Buying a home during a recession can be a good idea—but only for those who remain financially stable. An experienced local real estate agent can guide you, know your market, and help secure the best deal, even during uncertain times.”

Bottom Line

While many Americans anticipate a recession, most experts don’t see it as imminent. If your finances are strong, your job is secure, and you have a real need to move, you can still take the step to buy a home.

What’s holding you back from making your next move? Let’s talk it through.