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Prospective Buyers Say They’re Willing to Purchase Homes Even in a Recession—Here’s Why

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New-Home Sales

Prospective Buyers Say They’re Willing to Purchase Homes Even in a Recession—Here’s Why

Even in the throes of an economic recession, prospective buyers aren't willing to put off home purchases, especially as sellers drop their asking prices in overheated markets

September 13, 2022
Couple standing on front porch with signs that read "sold" and "our first house"
Image: Stock.adobe.com

Mortgage rates are creeping closer to 6% as the U.S. economy enters into a recession, but according to Realtor.com, that’s not enough to stop some house hunters from finding their forever homes. In a new survey by Realtor.com, 46% of respondents said that they are planning to purchase a home within the next six months, and 42% said a recession would have “no effect” on their decision to buy a home.

Though housing costs are on the rise, the market could soon tip in buyers’ favor, especially if a recession cools home price growth and further reduces buyer competition. As a result, 27% of survey respondents said that they are actually more likely to buy amid a recession. 

The data from the survey show that “some home shoppers are finding silver linings in the form of cooling competition,” Danielle Hale, chief economist at Realtor.com, said in a statement.

There are emerging signs of the market tipping in buyers’ favor: Fewer buyers are being outbid, dropping from a peak in April of 12.6% reporting that they were beaten out, to 9.4% in July.

“The share of buyers who report being overbid on a home has decreased as the market has begun to correct itself,” Realtor.com said.

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