Lisa Mailhot | April 9, 2025
Buyers
More and more buyers are tapping into their investments to make their real estate dreams happen. A recent survey conducted for Redfin found that 20% of people planning to buy a home in the near future are considering selling stock investments to cover their down payment—a notable change in how buyers are approaching home financing, especially when compared to the 13% of current homeowners who sold stocks when buying, and just 10% who sold to help afford mortgage payments.
What’s driving this move? In many cases, it’s necessity. High home prices, limited inventory, and rising costs of living are pushing people to dig deeper into their financial toolkits—and that includes their investment portfolios.
With recent drops in the stock market, “would-be homebuyers may back off as their bank accounts shrink and their confidence in the economy is shaken.” And that’s not just fear talking. The uncertainty is very real.
“Some prospective buyers are pulling back because they’re worried about volatility in the stock market,” said Heather Mahmood-Corley, a Redfin Premier agent. In areas like Phoenix, this sentiment is particularly strong among buyers in their 50s and up. They’ve built wealth in the market, but now they’re unsure whether it’s smart—or even possible—to use that capital for a home.
Much of this shift can be traced back to recent economic policies. President Trump’s new tariff strategy has had ripple effects across the stock market. Recent economic shifts—especially due to President Trump’s broad tariff policies—have stirred significant uncertainty in the stock market, leading to sharp and unpredictable fluctuations that have put investment strategies under a microscope.
These swings aren’t just headlines—they’re directly impacting how people fund home purchases. Redfin’s economic research team points out that when the stock market dips, it doesn’t just reduce the funds available for housing expenses—it also undermines buyers’ confidence and creates a broader sense of financial instability.
Here’s where it gets interesting: volatility doesn’t just scare people off—it also pushes some toward real estate. Market volatility might actually steer some buyers toward real estate, as many see homeownership as a more stable and reliable place to grow their wealth compared to stocks.
And while mortgage rates dipped to a six-month low on April 4, they’ve since rebounded. Still, it shows that economic uncertainty can create windows of opportunity. Homebuyers who act strategically may find themselves in a better position than expected.
There’s a clear divide in strategy between those buying and those renting. “Selling stock is less common than other methods of paying for housing,” especially among renters. Only 6% of renters have sold stocks to afford rent, and it ranks near the bottom of the list of 13 options.
In contrast, for prospective buyers, selling stocks is the third most common method of gathering a down payment. Here’s how it breaks down:
48% save directly from their paychecks
29% work a second job
20% sell stocks
Less common strategies mentioned by potential buyers included selling a previously owned property (16%) or using funds from an inheritance (11%).
For renters, the top strategies are using regular income (45%) and working a second job (20%).
If you’re feeling the market’s shake-up and wondering what your next move should be, you’re not alone. Orange County buyers are getting creative—selling stocks, working side hustles, and pulling from every corner of their finances to make homeownership happen. At Whitestone Real Estate, we get it. We’re not just about buying and selling homes; we’re about helping you build a strategy that fits your lifestyle and future goals. If you're considering a move, let’s connect and map out a plan that works for you—stock market swings and all.
Reference: Anderson, D. (2025, April 8). 1 in 5 Homebuyers Expect to Sell Stocks to Fund Down Payment: Redfin Survey. Redfin.
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