Bidding Wars Aren’t the Big Problem Anymore
Many would-be home buyers say they aren’t having much luck in finding a home. Sixty-six percent of buyers who were actively engaged in searching for a home in the second quarter say they’ve spent three months looking without success.
In the fourth quarter of 2020 and the first quarter of this year, active house hunters blamed being outbid by other offers as the most common reason for their inability to make a purchase. But the top reason changed in the second quarter: More would-be buyers said that high home prices are sidelining them lately, according to The Housing Trends Report, a survey from the National Association of Home Builders.
Thirty-nine percent of active buyers surveyed said the inability to find an affordably priced home was the main reason they couldn’t buy.
Forty-three percent of surveyed buyers said if they continue to be unsuccessful, they will expand their search area while shopping for a home. Forty-two percent will remain persistent and continue looking for the “right” home in the same location.
Overall, most long-term house hunters aren’t willing to give up. The share who are likely to put off their home search until next year or later has declined over the last two quarters, dropping to 20% in the second quarter. Home buyers continue to search for the right home, even if it takes more than three months to finally find one in their price point.
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