Selling during a recession: the pros

As the average cost to buy and sell a house continues to rise, it may seem counterintuitive to even consider listing your home. However, there are some significant pros to selling during a recession.

1. There’s less competition

You’re not alone in wondering if listing your home is a good idea. Many sellers put off listing during a recession, but this is one of the reasons why you might want to take a chance and put your house on the market. Fewer listings mean less competition. In hot neighborhoods, sparse listings mean faster sales.

2. There's more time to plan

On the other hand, some homes may sit on the market longer. If the market in your area is slower, this can work to your advantage.  A slowdown means you can list with the luxury of planning for your own move. In times of economic uncertainty, having plenty of time to plan is critical.  

3. It’s a good time to downsize

The largest home-buying demographic, millennials, don’t need or want the same space as generations before them. Renters looking to buy want homes that fit their lifestyle, which for many includes child-free living and the need for less space. If your home is smaller and you need more room to grow, now is a good time to list.

On the other hand, if your home has extra, underutilized space that costs money to decorate, heat, and cool, downsizing to a smaller home may make sense for you.

4. Regardless of the economy, single-family homes retain value

Many financial experts still believe single-family homes are one of the best ways to protect your money. Even during a recession, buyers look for safe places to invest; your home might be precisely what they need.

5. Buyers are motivated

There may be fewer buyers during a recession, but those buyers tend to be more motivated. Sales are often completed faster because many buyers want to qualify for mortgages before interest rates increase, and closing companies have less business.

6. Niche homes are still selling

Do you have the perfect starter home? Or is your listing more of a fix-and-flip? You’re in luck, because in many niche markets homes are still being snapped up within days. Young families will always need starter homes, and investors with cash know that a recession is a great time to expand their portfolio.

The cons of selling during a recession

There is an old saying: If you don’t know where you’re going, stay where you are. In a recession, many buyers follow this maxim and back off their home search. That’s just one of the cons of selling during a recession; here are five more.

1. The pool of home buyers gets shallow

During recessions, people tend to put off making significant changes, tighten their wallets, and save their cash. Many people aim to get through lean times by minimizing expenses and holding off on large purchases.

Even buyers tempted by low-commission realtors or hot deals know it’s more expensive to borrow money. The result is fewer potential buyers.

2. Bidding wars and high offers are rare

In the Covid era, low interest rates and limited housing stock, along with changes in remote work and school, sent buyers into a bidding war frenzy, with some homes selling in hours for thousands over asking. During a recession, the story is much different.

Instead of selling at 10, 15, or even 20% above asking as they did in 2021 and 2022, as of early 2025, data suggests many homes were selling slightly below the asking price. This varies depending on where you are and what you're selling. But overall, buyers are less likely to offer extravagant amounts over the asking price.

3. Selling could take longer

In some parts of the country, homes are still selling fast, but in others, not so much. It can be challenging to buy your new home and plan a move when you don’t have offers on your old one. If you are not in a rush to sell, this might be a pro, but if life circumstances mean you want to sell as fast as possible, you may need to accept a longer selling process (or a lower offer).

4. It’s a buyer’s market

In a recession, wages stagnate, unemployment rises, and spending slows. Sure, there’s high demand and low housing stock, but with a downturn predicted, many people are making do with what they have and staying where they are. The buyers who are looking don’t want to take on a massive mortgage with an astronomical interest rate with so much economic uncertainty. And on the other hand, they are less inclined to buy a fixer-upper due to the likely impact of tariffs bumping the cost of construction supplies and home goods.

So the buyers coming to your open house are not as willing to negotiate or take a chance on a property that needs work or is at the upper end of their budget.

To list or not to list

Ultimately, you’ll need to take a good look at your finances, the state of your home, and your goals for the future before deciding whether or not to sell your home during a recession. If you can take your time and the market is still steady in your area, now might be a good time to list.