While the process of buying and selling a home has always been stressful, recent surveys indicate that the levels of anxiety surrounding a potential real estate transaction are significantly increasing, leading to less engagement, distancing from the market and even therapy.
Bank of America’s 2025 Homebuyer Insights Report headlines shout, “60% of Homeowners and Prospective Buyers Uncertain About the Housing Market – A Three-Year High.” Ironically, the subheading states, “Despite Uncertainty, Prospective Buyers Are Cautiously Optimistic About Market Improvements.”
In a nutshell, if consumers are uncertain as to whether or not now is a good time to buy, and if a huge percentage of the homebuying and homeselling populace feels the same way, chances are they will not “do anything rash.” In other words, they’ll stay in a holding pattern until everything (hopefully) gets better. Whenever that may be.
4 reasons for increased real estate market anxiety
As with any uncertainty, it is important to get underneath the numbers to understand the macro issues shaping current trends. Here are the four key factors I believe are fueling the current uncertainty.
1. Overall market uncertainty
According to BofA’s report, even though many buyers believe the market is actually improving, a whopping 75 percent anticipate a decline in both interest rates and home prices and, as a result, are holding back from purchasing in anticipation of a market readjustment.
These thoughts are reiterated by Matt Vernon, head of consumer lending at Bank of America, who explains, “With so many factors impacting the homebuying market, prospective buyers and current homeowners are left wondering what it all means for them.”
Vernon continues, “As our research shows, a majority of buyers feel the market is headed in the right direction, but many are still planning to wait for more favorable conditions before they decide to take action.”
2. Increasing psychological pressures
With prices at an all-time high, buying a home has become a high-stakes venture with little or no room for error. A survey by Truework entitled The State of Homebuying in America states in its preamble,
“The survey reveals that 90 percent of recent buyers experienced stress during the process, with 30 percent reporting ‘significant stress,’ numbers that seem to go beyond typical transaction anxiety and an actual, measurable toll on mental wellbeing. And while, the younger buyers experience higher levels of stress, it’s consistent across generations.”
These thoughts are echoed in a Money article by Aly J. Yale, stating that mental health experts report increases in housing-related concerns showing up in therapy sessions that include sleep issues, relationship deterioration, rejection and hopelessness.
Yale states, “Buyers are so stressed, in fact, they’re seeking therapy for it. According to a recent survey from Realtor.com, 23 percent of recent homebuyers said the process drove them to schedule extra therapy sessions. More than a quarter took mental health days off work to deal with it all.”
3. Overall economic trends
It is no secret that there are a number of current economic uncertainties, including tariffs, fears of a housing crash, employment stability and ongoing inflation. A survey by Clever Real Estate, based on responses from 1,000 Americans, reveals that
- 81 percent have concerns about potential tariffs and corresponding trade wars
- 70 percent believe a housing market crash could happen in 2025
- 63 percent do not believe the government is correctly handling current economic issues
A National Mortgage Professional article dated March 26, 2025, states, “These concerns are translating into hesitation in the housing market. While more than half of Americans (54 percent) say they would prefer to buy now to avoid future price hikes, nearly a third (32 percent) of those planning major purchases in 2025 are delaying them. That includes 22 percent who planned to buy a home and 13 percent who intended to sell one.”
If you are looking for a clue as to why the current market is behaving like a sloth, look no further.
4. Climate uncertainty
States like California have seen their share of natural disasters in the past few years and, as a result, many buyers, particularly younger generations, are factoring climate issues into their homebuying process. Additionally, a significant number of those who have lost their homes to disasters are choosing to move on instead of rebuilding.
The BofA report also addresses this issue with the following stats:
- 62 percent of current homeowners and prospective buyers are concerned about the impact of severe weather and natural disasters
- 73 percent want to buy in areas where there is lower risk of these events occurring
- 38 percent have changed their preferred home purchasing location due to its risk of severe weather
- 23 percent of current homeowners have personally experienced property damage or loss in the past five years due to severe weather
- 65 percent are taking measures to prepare their home for the risk of severe weather
Any one of these issues would be significant in its own right, but when you add them together, the overall effect is a dampening in market enthusiasm, which has been reflected by a market currently in the doldrums.
Rather than plan a real estate transaction in the short term, both buyers and sellers are choosing to sit on their hands on the sidelines, hoping that by timing the market, they will have better fortunes at some point in the future. Good luck with that.
4 ways to move clients forward
So how do we get clients moving in a time of uncertainty?
To begin, you have to be able to convey empathy. They need to know that you understand their position and that you will not be trying to force them to do anything. You need to approach them as a coach to nurture them forward, and at the same time, help them understand you are working with their best interest in mind, not your own personal aspirations.
Here’s what to do if your clients are:
1. Uncertain about the market
Explain how attempting to time the market is not a new idea and has proven, over the years, to be an unwise strategy. Regardless of the type of market or its direction, there are always those trying to sell when values peak and buy when they have bottomed out. Problem: You never know when those exact moments are going to be.
This dilemma has ruined countless day traders. Terry Smith of Fundsmith puts it this way: “There are only two types of people: Those who can’t market time, and those who don’t know they can’t market time.”
In real estate, by the time you have figured out that the market has turned, it is already too late. As an example, if the market reverses and suddenly multiple offers and over-asking prices are the new reality, buyers are going to be kicking themselves as they realize they should have bought a few months ago when they had the opportunity to write offers without competition.
Additionally, help them understand the cost of waiting. For sellers in a declining market, how much might they lose in actual market value, along with the hidden costs of additional taxes, ongoing maintenance, continued mortgage payments and more.
For buyers, add up the cost of waiting by looking at potential increases in mortgage rates, increased prices, market values outpacing their ability to save a down payment and more. Additionally, how much are they losing in lost equity by paying someone else’s mortgage and extra taxes paid by not qualifying for the homeownership tax breaks.
There are some excellent “cost of waiting” calculators out there that you could utilize to help them see the actual data.
2. Facing increased psychological pressures
Many buyers and sellers think they are alone in this process and fail to realize that thousands have successfully gone before. For buyers, a comprehensive buyer consultation may be all they need to help reduce the stress. Having a lender walk them through the actual numbers may also help.
For some, getting therapy may be the final solution, as a trained therapist can help them weigh the pros and cons of buying and help them push through their angst. For sellers, helping them understand that they will have an experienced agent walking them through every single step may help relieve the stress.
3. Concerned about overall economic trends
Your clients — buyers and sellers — need to be reminded that the newsmakers and media are not providing a balanced overview of the market. Bad news sells, and the worse they can spin it, the more eyeballs they can garner.
Additionally, the news they are providing is on a national level, not in tune with your local market. Lastly, all real estate news is at least 30 days old — some much older.
Go through the local numbers and economic factors to help them make informed decisions. Both buyers and sellers can lose money by waiting, but many will need to see it on paper on real time based on actual numbers from the local market in which they live.
They may not be able to control the overall market and economy, but they can control their choices, including location (for buyers), budget and timing. Coach them to focus on the actual facts and make decisions based on the data, not fear.
4. Dealing with climate uncertainty
Many states provide hazardous zone maps, which not only specify the locations of hazardous zones but their severity. Buyers can be provided with these maps to help them find their way to a home outside the various zones or with tolerable risk. They can also be shown homes in higher risk zones that have been updated to meet the risk or purpose built for the area.
Potential sellers can use the maps to identify the zone they occupy and provide a road map to other less dangerous zones should they choose to relocate. If they live in a hotspot and want to upgrade their home to make it more saleable (fire-resistant finishes on their home, landscaping buffers, seismic retrofitting and more), there are many resources available to help them accomplish those goals.
Those who function out of fear can get enmeshed in anxiety. Learn to identify the issues they are dealing with and help lead them into a new chapter in their lives.
Carl Medford is the CEO of The Medford Team.
