Prospective buyers are searching for a home for upwards of three months, according to the National Association of Home Builders. The top reason for why buyers cannot commit is the inability to find an affordable home, with 38% of survey respondents unable to find a home in their budget. Another reason is that 27% of buyers continue to be outbid. This is a large jump from last year where 15% of buyers blamed getting outbid. The share of prospective buyers who plan to expand their search area also grew from 35% last year to 45% now, reflective of the sparse housing inventory.
When asked what they’ll do next if still unable to find a home in the next few months, 26% of these veteran house hunters say they’ll buy a more expensive home than originally intended, three times the share with that strategy a year earlier (9%). The share who will expand their search area is also higher, up from 35% to 43%, which is consistent with findings showing increased home building in lower-density markets. The one thing long-term active buyers are less likely to do than a year ago is continue looking for the ‘right’ home in the same preferred location, down from 52% to 47%.
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