In a sign that the inventory of for-sale homes remains tight, NAHB’s quarterly Housing Trends Report reveals that more buyers are finding their home search delayed because of a rising number of multiple offers on the same property. The survey found 30% of active buyers reported getting outbid by another buyer in the second quarter of 2020, significantly higher than the comparable 18% share a year earlier.
The top reason long-time searchers (those spending more than three months looking for a home) haven’t pulled the trigger continues to be the inability to find an affordable home (39%); however, that share is much lower than reported a year ago (50%).
Among these veteran house hunters who have been actively searching for a home for at least three months, they report they will take the following steps if the right home remains elusive in the months ahead:
- 51% will continue looking for the “right” home in the same preferred location;
- 37% will expand the search area;
- 21% is willing to accept a smaller/older home;
- 19% might buy a more expensive home; and
- 19% will give up on finding a home until next year or later.
The Housing Trends Report is a research product created by the NAHB Economics team with the goal of measuring prospective home buyers’ perceptions about the availability and affordability of homes for sale in their markets.