Homebuyers are paying close attention to the economy, and it makes sense why. Purchasing a home is one of the biggest financial decisions most people will ever face. With all the recession talk in the news, many potential buyers are starting to rethink their plans.

A recent LendingTree survey found that nearly two out of three Americans believe a recession is on the horizon. Plus, 74% of those surveyed say this outlook is affecting the way they handle their finances.

Here’s the good news: experts aren’t nearly as worried about a recession as most Americans are.

Most Americans think a recession is coming, but most experts disagree.

A recent report from the Wall Street Journal in October shows that just about one in three experts believe we might face a recession within the next year (take a look at the graph below).

If the expert economists aren’t too concerned, do you really need to be? We’re not currently in a recession, and there’s no certainty that we will enter one.

What we’re really facing is uncertainty, and the smartest way to deal with it is by focusing on facts instead of fear. You can do this by making sure you have all the information you need to make a well-informed decision.

Tips for Buying a Home During Periods of Economic Uncertainty

The best advice I can share right now is this: it’s good to stay aware of what’s going on in the economy, but don’t let that distract you from your own personal needs. Economic ups and downs happen, but the core reasons people buy homes stay pretty much the same. Danielle Hale, Chief Economist at Realtor.com, puts it well:

““Well-prepared buyers who have been waiting on the sidelines are likely motivated by personal and lifestyle needs like growing families, new jobs, or retirement. And these considerations can outweigh short-term economic uncertainties . . . ”
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— Danielle Hale, Chief Economist at Realtor.com

The best time to make your move is when it fits your real-life situation, not based on the latest headlines.

Here’s the important part: if you’re thinking about buying a home right now, having a steady job is crucial. You want to be sure your income is reliable and that you can handle your mortgage payments comfortably, no matter what changes might come in your personal situation or the economy.

If your job feels stable and you have some savings set aside, experts say you don’t always have to wait. Just keep these tips from Redfin’s economists in mind:

• Decide on a budget and keep to it. Avoid stretching yourself too thin. Make sure your monthly payments feel manageable and you have enough savings set aside for any unexpected expenses. Remember to include costs that might go up over time, like home insurance and property taxes.

• Negotiate. With more homes on the market and some buyers stepping back, you actually have a bit more leverage right now. That means you can negotiate with sellers and put yourself in a great position to snag a better deal. Use that advantage while it’s here!

• Be smart about your payments and mortgage rate. Chat with a lender about what you can comfortably afford right now and what rate you qualify for. They can also walk you through your options if rates drop later, so you’re prepared either way.

• If you already own a home, you might want to think about selling it first. It can take a lot of the financial stress off your plate and give you a clearer idea of what you can comfortably spend on your next place.

There’s really no substitute for having a trusted team by your side, especially in today’s market. As Bankrate points out:

““Buying a home 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 also work to get you the best deal in any given situation, including a recession.”
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— Bankrate

Bottom Line

A lot of Americans believe a recession is on the way, but experts generally don’t share that view.

You don’t have to put your moving plans on hold. If your finances are in good shape, your job feels secure, and you have a real reason to move, you can definitely go for it.

What’s stopping you from taking the next step? Let’s chat about it.