The National Association of Homebuilders reports that 69% of homebuyers actively searching in the fourth quarter of 2020 spent more than three months with no success.
The top reason why long-time searchers have not purchased a home is because 40% say they were outbid.
This is the first time in the history of the report that an inability to find a home (33%) was not the top reason buyers waited. The trend was the opposite in the year prior, with 44% citing unaffordable prices and 19% outbids from other buyers.
In a survey by NAHB, 50% of active buyers searching for three or more months will continue looking for homes in the same location, and 38% will extend their search area.
The three reasons for holding off on buying that experienced the biggest change between 2019 and 2020 were homebuyers:
- likely to wait until next year or later (16% to 28%)
- waiting to buy a more expensive home (16% to 27%)
- willing to accept a smaller/older home (19% to 28%).