Anxiety around real estate transactions is nothing new, but recent surveys reveal that that anxiety is reaching new heights. This growing unease is causing many to disengage from the market, delay decisions, and in some cases, seek professional help to cope. According to Bank of America’s 2025 Homebuyer Insights Report, a striking 60% of homeowners and prospective buyers now feel uncertain about the housing market—marking a three-year high. Yet, in a twist of irony, the report also notes that many buyers remain “cautiously optimistic” about future improvements.

In essence, when a large portion of the market is unsure whether it’s the right time to make a move, most people tend to play it safe. Rather than rushing into a decision, they’re choosing to wait it out—hoping for clearer skies ahead. Whenever that may be.

4 Reasons For Anxiety Around Real Estate Transactions

In times of uncertainty, it’s essential to look beyond the surface data and examine the broader forces driving today’s market dynamics. These are the four key factors I believe are contributing to the current climate of unpredictability.

Lingering Market Uncertainty

Despite growing optimism among buyers, Bank of America’s report reveals that 75% still expect both interest rates and home prices to drop. This anticipation of a market correction is causing many to hit pause on their purchasing plans, waiting for conditions to shift in their favor.

Matt Vernon, head of consumer lending at Bank of America, underscores this sentiment: “With so many factors impacting the homebuying market, prospective buyers and current homeowners are left wondering what it all means for them.” He adds, “While most believe the market is moving in the right direction, many are choosing to wait for more favorable conditions before making a move.”

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, “.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.”

Economic Jitters are Fueling Anxiety Around Real Estate Transactions

It’s no surprise that today’s economic landscape is riddled with uncertainty—ranging from tariff tensions and inflation to fears of a housing crash and shaky job stability. A recent Clever Real Estate survey of 1,000 Americans paints a clear picture:

• 81% are worried about potential tariffs and trade wars
• 70% believe a housing market crash could occur in 2025
• 63% lack confidence in the government’s handling of economic issues

These anxieties are already impacting consumer behavior. As reported by National Mortgage Professional on March 26, 2025, more than half of Americans (54%) say they’d rather buy now to avoid future price hikes. Yet nearly a third (32%) of those planning major purchases this year are putting their plans on hold—including 22% who intended to buy a home and 13% who were ready to sell.

Climate Change is Adding to Anxiety Around Real Estate Transactions

In disaster-prone states like California, the growing frequency of wildfires, floods, and other extreme weather events is prompting a shift in how buyers—especially younger generations—approach homeownership. Climate risk is no longer a distant worry; it’s a central factor in the decision-making process. Many who’ve lost homes to natural disasters are opting not to rebuild, choosing instead to relocate to safer areas.

Bank of America’s report highlights the depth of this concern:

• 62% of homeowners and prospective buyers are worried about the impact of severe weather
• 73% prefer to buy in regions with lower climate risk
• 38% have changed their preferred homebuying location due to weather-related threats
• 23% have personally experienced property damage or loss in the past five years
• 65% are actively preparing their homes to withstand severe weather

Any one of these factors would be enough to shake market confidence. Taken together, they’re contributing to a broader slowdown in activity. Rather than diving into real estate decisions, buyers and sellers alike are staying on the sidelines—waiting for a more stable moment to make their move. Whether that moment arrives anytime soon is anyone’s guess.

If this sounds like what you are feeling, then let’s talk.  I may have some suggestions to help you navigate your very understandable concerns.  You can reach me at 240-401-5577 or email me at lise@lisehowe.com.