The National Association of Home Builders says low mortgage rates, a desire for more space, and the suburbs are the main reasons prospective buyers are now turning into active buyers. For the fourth year in a row, the number of prospective buyers turned active buyers has increased. During the fourth quarter of 2020, 15% of adults were considering a move in the next 12 months, according to a NAHB survey. Now, 56% of that share have turned into active buyers. One year ago, 43% of prospective buyers turned active.
Between the fourth quarters of 2019 and 2020, significantly larger shares of Millennials (46% to 65%) and Gen X’ers (43% to 57%) planning to buy a home have become engaged and are actively searching for a home. On the other hand, the shares remained essentially flat among Gen Z (42%) and Boomer (38%) prospective buyers.
Geographically, larger shares of prospective buyers in every region are actively trying to find a home to buy than a year ago, but the increase is most notorious in the West (41% to 61%) and in the Northeast (49% to 67%).
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