A new survey from Redfin (NASDAQ: RDFN) has found one in five (20%) prospective homebuyers are expecting to sell stocks to help fund their next down payment.
Among homeowners, Redfin found roughly one in eight (13%) said they sold stocks to help fund their down payment while one in 10 (10%) homeowners have sold stocks to help afford their mortgage payments. As for renters, only 6% admitted selling stock to cover their housing costs.
Chen Zhao, Redfin’s economic research lead, warned that the tumult in the stock market following President Trump’s tariff policies will push down homebuying demand because it takes money out of prospective buyers’ pockets.
“Big drops in the stock market not only cut into funds earmarked for down payments and other housing costs, they shake consumer confidence and make people feel poorer in general,” Zhao said. “And this comes at a time when people are bracing for the price they pay for all kinds of things to rise as tariffs go into effect. But there are some possible silver linings for the housing market. One, a volatile stock market can encourage people to invest their money in real estate instead of stocks because some may view a home as a safer investment. Two, stocks declining can push mortgage rates down.”
Redfin’s survey was conducted by Ipsos last September, with input from 1,802 adults.
