Bidding Wars are Top Reason Keeping Buyers From Purchasing
More active homebuyers are struggling to purchase due to bidding wars and less due to […]
More active homebuyers are struggling to purchase due to bidding wars and less due to affordability. The National Association of Home Builders found that of the 16% of American adults considering a move in the first quarter of 2021, 63% have turned active, but a large share remain on the hunt for a home. Forty-five percent of buyers cite losing bidding wars as the most common reason they have not yet purchased while 32% say they cannot find a home within their budget. This flips the script from one year earlier when 40% of buyers struggled to find an affordable home and 23% continue to lose bidding wars.
When asked what they are most likely to do next if still unable to find a home in the next few months, 50% of active buyers searching for 3+ months will continue looking for the ‘right’ home in the same location – about the same as a year earlier. On the other hand, 42% will expand their search area, an increase from the 34% willing to take that step a year earlier.
Difficulties finding a home to buy will likely lead 25% of active buyers to give up until next year or later, up from 16% a year earlier. Historical data show a steadily rising trend in the share of long-term searchers likely to quit looking for a home until next year or later, as the latest increase marks the fifth year-over-year rise in this metric.
