A survey reveals that many buyers still show confidence in the market
Homebuyers remain optimistic even when the housing market is starting to experience the effects of a slowing economy, according to a recent report from Realtor.com.
Approximately 70% of homebuyers think the United States will enter a recession in the next three years, but many of these potential buyers still show confidence in the market, according to the survey data.
“The US economy has been on a hot streak for the last seven years, producing steady economic growth and low unemployment rates,” said Danielle Hale, chief economist at Realtor.com. “Historically, this type of growth hasn’t continued indefinitely, and US home shoppers think it will come to an end sooner rather than later.”
The survey asked the respondents if the US housing market would fare better or worse than it did during the 2008 economic recession. According to 41% of the respondents, the housing market will get better. Another 36% believe it will get worse, and 23% expect it to remain unchanged.
Hale said this is because some homebuyers have a slightly pessimistic point of view and are buying homes with “eyes wide-open and very sober.” In fact, 45% said they feel at least slightly more optimistic about homeownership after the 2008 recession.
“When the US enters its next recession, it is unlikely that the housing market will see a sharp nationwide downturn,” said Hale. “The same record low inventory levels that have made buying a home so difficult recently, will likely protect home prices in the next recession.”