In the latter Credit boom questionnaire, nearly 2 in 3 Americans said they think a recession is coming. And 74% of respondents say this has an impact on their financial decisions.
But here’s the good news: the experts are not nearly as concerned.
Most Americans expect a recession, but most experts do not
This is evident from a report from October Wall Street Journal (WSJ), only 1 in 3 experts surveyed say we are heading for a recession sometime in the next 12 months (see graph below):
If the expert economists aren’t too concerned, should you be? We are not currently in a recession. And there’s no guarantee we’ll face one.
What we Doing uncertainty is – and the best way to deal with it is to rely on facts, not fear. You can do that by making sure you have the information you need to make an informed decision.
Tips for Buying a Home During Periods of Economic Uncertainty
This is the best advice anyone can give right now. While it’s important to keep an eye on what’s happening in the economy, that doesn’t necessarily overshadow your real needs. Economic shifts come and go, but the reasons people buy homes rarely change. Danielle Hale, chief economist at Realtor.comexplains:
“Well-prepared buyers who have been waiting on the sidelines are likely motivated by personal and lifestyle needs, such as expanding families, new jobs or retirement. And these considerations may outweigh near-term economic uncertainties…”
Timing your moves in real life (not in the news cycle) is the most important thing.
But here’s the key. If you are going to buy a house now, the stability of your job is really important. You need to be confident in your income and know that you can comfortably manage your mortgage payments, even if your situation or the economy changes.
If your job is secure and you’ve built up some savings, experts say you don’t necessarily need to procrastinate. Just save these tips from the economists Redfin in mind:
- Set a budget and stick to it: Don’t exaggerate. Make sure your payments are affordable and that your savings can cover any surprises. This takes into account costs that are likely to increase, such as home insurance and taxes.
- Negotiate: There are more homes for sale right now, and other buyers may be backing away due to their own fears. This gives you more negotiating power when working with sellers. Use it to get the best possible deal.
- Be strategic when it comes to payments and mortgage interest: Talk to lenders about what payment you can afford and what rate you can qualify for today, and about your options if rates drop later.
- Consider selling before you buy: If you already own a home, selling first can reduce financial pressure and help strengthen your budget for your next home.
But nothing replaces the value of having a trusted team around you, especially now. As bank interest say:
‘Buying a house during a recession can sometimes be a good idea – but only for people who are lucky enough to remain financially stable… Be sure to enlist the help of an experienced local real estate agent. Not only do agents know their markets well, they will work to get you the best deal in any situation, including a recession..”
In short
Most Americans think a recession is coming. But most experts don’t.
So you don’t necessarily have to put your moving plans on hold. If your finances are solid, your job is stable, and you have a real need to move, you can still make it happen. You just need the right team of professionals by your side.
What’s stopping you from taking your next step? Contact a local agent and lender to discuss it.
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