The economy is in a recession? 30-year mortgage rates near 6%? Doesn’t matter—some home buyers are still planning to buy a home in the next six months, according to a new survey.
According to the survey by Realtor.com, which looked at visitors accessing listings as well as search results, nearly 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.
That’s higher than the share of buyers who planned to buy in July 2019.
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.
With rising inventory levels, and options available in smaller, more rural markets, “this fall could bring relatively better chances to find a home within budget,” she added.
(Realtor.com is operated by News Corp subsidiary Move Inc., and MarketWatch is a unit of Dow Jones, which is also a subsidiary of News Corp.)
Two in five buyers believe that the U.S. economy is already in a recession. But 42% of respondents said that the recession will have “no effect” on their decision to buy a home.
In fact, around 27% of buyers are actually more likely to buy amid a recession. That’s up from 24.7% from last year.
But the market’s also made of buyers who are very spooked by the current conditions. The share of buyers who say they’re a lot less likely to buy now amid a recession rose from 5% last year to 6.5% this year.
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 report
“The share of buyers who report being overbid on a home has decreased as the market has begun to correct itself,” Realtor.com said.
About half of buyers also said they’re looking to buy in a small town or a rural area.
But it’s still a slog to buy a home for some.
First-time buyers are facing some issues when it comes to buying a home: More than 12% reported being outbid.
Two in five first-time buyers also said that their budget has been a challenge in the process of buying a home.
The median price of homes in the U.S. nationally was $435,000 in August, Realtor.com said. That’s down from an all-time high of $450,000 in June.
Around 20% also said that their credit score was “interfering” with their plans to buy. (This is compared to 9.5% of all buyers).
The post ‘The Market Has Begun To Correct Itself’: House Hunters Say They’re Ready To Buy in the Next Six Months—Even in a Recession. Here’s Why. appeared first on Real Estate News & Insights | realtor.com®.