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Redfin: 20 percent of homebuyers selling stocks to help cover down payment

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Thursday, April 10, 2025

One in five (20 percent) prospective homebuyers expect to sell stocks to help fund their next down payment, according to a new survey from Redfin.

Roughly one in eight (13 percent) homeowners report selling stocks to help fund their down payment. One in 10 (10 percent) homeowners have sold stocks to help afford their mortgage payments. Renters are less likely to use stock investments for their housing payments, with just 6 percent of renters selling stock to afford rent.

“Some prospective buyers are pulling back because they’re worried about volatility in the stock market,” Phoenix Redfin Premier agent Heather Mahmood-Corley said in a release. “In my area, this is mostly a concern for buyers in their 50s and older. Many of them are retreating from the housing market because a lot of the money they’d use to pay for housing is sitting in their stock portfolios, and they just don’t know what’s going to happen.”

Stock investments are top of mind because President Trump’s sweeping new tariff policy has sent shockwaves through the economy, sending the market on wild up-and-down swings, according to Redfin. Most homeowners hold some of their wealth in stocks, and so do many renters. Nearly seven in 10 (68.8 percent) homeowners had stock holdings as of 2022, as did 36.9 percent of renters.

Chen Zhao, Redfin’s economic research lead, said the dropping value of stocks will push down homebuying demand, most directly because it takes money out of prospective buyers’ pockets. A significant portion of buyers plan to use stocks to fund their down payment, and now they may not have enough money in their portfolio. Volatility in the stock market also pushes down homebuying demand in other ways, according to Zhao.

“Big drops in the stock market not only cut into funds earmarked for down payments and other housing costs, they [also] 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. 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.”

Mortgage rates fell to a six-month low on April 4. Rates have since jumped, but it’s unclear which way rates will go in the next few weeks, as economic news is rapidly evolving.

Selling stock less common than other methods of paying for housing

Selling stocks is a less prevalent way of paying for housing than other methods—but it’s more common for homeowners than for renters.

For house hunters looking to purchase a home soon, selling stock investments is the No. 3 way they’re putting together funds for a down payment, out of 13 possible choices. Nearly half (48 percent) of likely homebuyers plan to save directly from paychecks for their down payment, 29 percent are working a second job, and 20 percent plan to sell stocks. Some of the less prevalent methods of saving for a down payment are selling another home (16 percent) and using an inheritance (11 percent).

For renters, selling stocks is near the bottom of the list of methods people use to pay for housing. Of 13 possible choices, only two were less commonly cited than selling stock, which clocked in at 6 percent: using an inheritance (5 percent) and selling cryptocurrency investments (5 percent). The most common ways to pay rent are using regular income (45 percent) and working a second job (20 percent).

This data was compiled through a Redfin-commissioned survey conducted by Ipsos in September 2024, fielded to 1,802 U.S. residents aged 18-65.

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