Real estate brokerage Redfin conducted 2 surveys in December of 2019 and March of 2020. Data shows that an increased number of both home buyers and sellers expect home prices to fall.
In December 2019, both buyers and sellers felt optimistic about home prices continuing to increase, even with the possibility of a recession on the horizon.
In March 2020, just three months later, 44%, the largest percentage of respondents, said that they expect home prices to fall.
Those under the age of 45 saw the most significant shift in their expectations.
However, falling home prices may create some unique buying opportunities for first-time, or younger, home buyers.
A falling stock market in March and widespread predictions of a looming recession could be contributing to more consumer anxiety. “It’s easy to become fearful when it feels like a recession is imminent,” said Redfin Chief Economist Daryl Fairweather.