And although the housing market is beginning to experience the wrath of a slowing economy, a new report from Realtor.com suggests homebuyers remain hopeful.
According to the company’s survey data, nearly 70% of home shoppers believe the U.S. will enter a recession in the next three years. However, many of these prospective buyers still express confidence in the market.
“The U.S. economy has been on a hot streak for the last seven years, producing steady economic growth and low unemployment rates,” said Realtor.com Chief Economist Danielle Hale. “Historically, this type of growth hasn’t continued indefinitely, and U.S. home shoppers think it will come to an end sooner rather than later.”
In fact, when respondents were asked if the U.S. housing market would fare better or worse than it did during the 2008 economic recession, 41% responded with better.
That being said, 36% of respondents still expect it to be worse, and 23% expect it to be just the same.
Hale said this is because some home shoppers are buying homes with “eyes wide-open and very sober, if not slightly pessimistic.”
“When the U.S. enters its next recession, it is unlikely that the housing market will see a sharp nationwide downturn,” Hale added. “The same record low inventory levels that have made buying a home so difficult recently, will likely protect home prices in the next recession.”
And home shoppers may believe this too as 45% of home shoppers indicated they feel at least slightly more optimistic about homeownership after the 2008 recession.
NOTE: Realtor.com commissioned Toluna Research to conduct this survey, consisting of 1,015 active home shoppers. The company defines “active home shoppers” as those who plan to purchase a new home within this year.