Many buyers who have actively searched for a property over the course of three or more months cite affordability as the primary reason they have yet to purchase. The National Association of Home Builders’ Housing Trends report found 39% of active buyers blame the inability to find an affordable home, a change from the past two quarters where buyers cited getting outbid by other offers as the primary hurdle. A large chunk of buyers still cite getting outbid as a challenge. If these buyers cannot find a home within the next few months, 43% say they would expand their search area and 42% will stick it out.
More buyers expanding the area where they are searching for a home is linked to the increasing ability of many workers to work remotely from home, thus severing the need to be in close proximity to office space.
Meanwhile, after reaching a series high of 28% in the final quarter of 2020, the share who are likely to give up their home search until next year or later has declined for two straight quarters, falling to 20% by the second quarter of 2021.