After a competitive year for the housing market, those still searching for a home are reporting bidding wars as the top reason for their lack of home buying success. A report by the NAHB’s Eye on Housing shows that the majority of prospective buyers are turned away by bidding wars making it difficult to secure a home at an affordable price.
For only the third time in this series history, the top reason these long-time searchers haven’t pulled the trigger is not because they can’t find a home at an affordable price (36%), but because they keep getting outbid by other offers (45%). At the start of this series, in the first quarter of 2018, only 18% blamed bidding wars for their home buying woes.
When asked what they are most likely to do next if still unable to find a home in the next few months, 49% of active buyers searching for 3+ months in the third quarter of 2021 said they will continue looking for the ‘right’ home in the same location, up from 42% a quarter earlier. The share that will accept a smaller/older home also rose during this period, from 24% to 29%.
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