Despite Recession Fears, Nearly 30% of Home Shoppers Say a Downturn Could Make Them More Likely to Buy a Home

Core Insights - A significant portion of U.S. homebuyers, 63.4%, anticipate a recession within the next year, the highest level of concern since 2019, yet nearly 30% believe a recession may increase their likelihood of purchasing a home, indicating a complex market dynamic [1][2][3] Buyer Sentiment - Economic anxiety is prevalent, with many buyers motivated by personal circumstances such as family growth or job changes, which may outweigh economic uncertainties [2][3] - 54.4% of buyers stated that a recession would not affect their home purchasing decisions, suggesting resilience in the housing market despite economic concerns [3][9] Market Conditions - The current housing market is characterized by limited inventory, with 44.3% of buyers citing a lack of suitable homes as a major concern, and total active inventory remaining 16.3% below historical norms [4][9] - Budget constraints are a significant issue for 36% of buyers, which could worsen if inflation rises or interest rates remain high [5] - The competitive nature of the market is easing, with only 7.7% of buyers concerned about overbidding, down from 10.4% the previous year, indicating a calmer market environment [6][9] Challenges in Financing - Credit-related challenges are becoming more pronounced, with 13.5% of buyers reporting poor credit scores as a barrier and 8.2% struggling with mortgage qualification [5]