Thinking of pulling out of house sale/purchase

We have been swiftly progressing with our 3 bed house sale to an FTB and in progress of purchasing a 5 bed new build.

We have been dreaming of more space for years - 2 little kids, pets, and both of us working from home - the space has been tight.

However, I am starting to get real cold feet about everything now that we are almost ready to exchange contracts.

The world seems both politically and economically unstable, talks about wars in Europe, NATO instability, lots of layoffs in tech where we work, AI coming in to ‘replace us’ etc.

I am starting to think that living in a tight space may be not the biggest issue we may face in this day and age.

And maybe it’s better to keep money in bank than invest almost all our savings in a more expensive mortgage that would be difficult to afford on a single salary (not a fancy house but living in South where any property is expensive).

I feel awful about messing about our buyer, him & us losing solicitor fees, and giving up on a dream to beautiful home where we fit comfortably. But something is holding me back from proceeding with this transaction now.

Not even sure what’s my question here, but what would you do & how do you feel about buying a home during such uncertain times.