Survey: 2 Out of 3 Buyers Shopped for More than 3 Months
2 out of 5 (38%) actively engaged homebuyers said high prices kept them from actually submitting a bid, while 30% said they’d put in an offer but were outbid.
MIAMI – According to data from the National Association of Home Builders, 62% of buyers who were actively engaged in the process of finding a home in the third quarter spent three months or more searching for a home without success.
The challenge? 38% of those buyers said high home prices kept them from pulling the trigger, but that’s lower than a year earlier when 45% said the same.
But twice as many buyers, year-to-year, are being outbid. Nearly 30% in the latest Housing Trends Report said they were outbid by higher offers from other buyers, almost double the 15% of buyers who said the same last year.
According to the report, between the third quarters of 2019 and 2020, the share of active home buyers whose searches have lasted three months or more and who keep getting outbid has increased in every region of the country. In the South, 25% of active home buyers said they were outbid in 2020, up from 17% a year ago.
When asked what they’ll do next if still unable to find a home in the next few months, 26% said they’ll buy a more expensive home than originally intended – triple the number of buyers who said they’d do so a year ago. Today’s buyers are also expanding their search areas as a strategy to find homes, up from 35% a year ago to 43%. Meanwhile, the share who said they’d continue to search for the right home in their preferred location was down to 47% from a year ago.
However, 20% of long-term active buyers said they would give up, compared to 15% one year earlier.
Source: Miami Agent Magazine (11/03/2020) Kennedy, Kerrie
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