Buying a Home in a Shrinking Economy: What You Need to Know

A shrinking economy. Rising mortgage rates. Flatlining prices.

If you’ve been thinking about buying a home in 2025, it’s no wonder you're feeling hesitant. The gut reaction for many buyers right now is to wait. To sit back and see how things play out. And honestly, with headlines like “GDP Falls in Q1” and “Recession Watch 2025,” who could blame you?

But here’s the thing: not everyone is hitting pause.
Savvy buyers are still moving forward—but with a plan.

Let’s talk about how to buy smart, even when the economy feels shaky.

Step 1: Get Clear on What’s Actually Worrying You

When I speak with buyers, here’s the most common concern I hear:

“I think I just want to wait and see what happens with the economy. I don’t want to make a mistake.”

Totally fair. Buying a home is a major commitment. But here’s a little mindset shift that can help: Instead of freezing, get specific.

Ask yourself:

• Is it interest rates that scare me?

• Is it job security?

• Am I worried about overpaying or buying at the wrong time?

The more clarity you have on what is making you nervous, the easier it is to find real answers—not just media noise.

Step 2: Understand What the Market Is Actually Doing

Let’s separate fear from facts.

📊 According to Realtor.com’s April 2025 report:

• Inventory is up 30.6% year-over-year, giving buyers more options and reducing bidding wars.

• 18% of homes had price reductions, the highest for any April since at least 2016.

• Homes are taking longer to sell—median 50 days on the market, up four days from last year.

• Median list price: $431,250. Price per square foot is only up 1.1%, showing price stability.

This doesn’t look like 2008. In fact, history shows that in 4 of the last 6 recessions, home prices actually went up. That’s worth remembering.

Step 3: Build a Plan That Fits You

If you're considering buying in the next 18 months, you’ve got two great paths:

✅ Option 1: Rent + Watch + Prepare

• Rent for now, build savings, and monitor the market.

• Use this time to improve your credit, learn about loan options, and define your buying criteria.

✅ Option 2: Explore the Market Now

• Use the current inventory jump and slower pace to your advantage.

• Look for motivated sellers and negotiate with confidence while competition is still low.

Neither path is wrong. But waiting without a plan? That’s where buyers often miss opportunities.

Zooming In: What’s Happening in Vancouver WA

Here in Vancouver, we’re seeing:

• 7% more homes for sale than last year.

• 65 average days on market.

• Pending sales decreased 1.8% from offers accepted in April 2024.

• 📍 Real estate is local. Even in a tough national economy, your specific market might tell a different story.

Final Thoughts: Fear is Normal—Planning is Powerful

Economic uncertainty can make even the most confident buyers second-guess their timing. But here’s what separates successful buyers from sidelined ones:

They gather facts, not just headlines.
They stay focused on their long-term goals.
They act strategically—not emotionally.

Want help building your plan? Let’s talk.