Currently Reading

Bidding Wars Are Top Reason Active Buyers Remain Unsuccessful

Advertisement
Market Data + Trends

Bidding Wars Are Top Reason Active Buyers Remain Unsuccessful


February 12, 2021
Housing and money
Photo: sap

Nearly 70% of active buyers still searching for a home last quarter have spent up to three months on the hunt, with most blaming getting outbid. The National Association of Home Builders began tracking the reasons active buyers have remained unsuccessful since the beginning of 2018. Getting outbid when making an offer ranked number one for the first time, whereas housing affordability typically lives at the top. From the share of long-time active buyers, 33% blamed housing affordability and 40% blamed getting outbid. Last year, 44% of buyers struggled due to affordability and only 19% reported getting outbid.

When asked what they’ll 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 and 38% will expand their search area, both about the same shares as a year earlier. The most significant changes between the final quarters of 2019 and 2020 come in the shares likely to give up until next year or later (16% to 28%), to buy a more expensive home (16% to 27%), and to accept a smaller/older home (19% to 28%).

Importantly, 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 fourth year-over-year rise in this metric.

Read More
 

Related Stories

Housing Markets

Denver Listings Gone in Five Days with Inventory at Record Low

The Denver metro area has consistently averaged 13,531 active listings by the end of February since 1985. By the end of February 2021, there were…

Market Data + Trends

Does it Make More Sense to Rent or Buy in Your Market?

Rents in urban areas have dropped as a result of the pandemic, but even so, buying makes the most sense in these 10 metros, says Realtor.com.…

Construction

Residential Construction Increased 20% in Outlying Counties in 2020

Single-family construction boomed in the suburbs, exurbs, and rural communities in 2020—a direct result of the COVID-19 pandemic, according to the…

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.