A closer look at the National Association of Home Builders (NAHB) Housing Trend Report (HTR) reveals that 69% of buyers who have been actively engaged in the process of find a home in Q4 of 2020 have spent in excess of 90-days searching for a home without success. For the first time in the history of the HTR, the reason for their lack of success is not related to the affordability (33%) but rather because they continue to get outbid by other offers (40%). A year ago, it was just the opposite with 44% citing unaffordable prices and only 19% being outbid. When buyers who had been searching for 90-days+ without were asked what their plans were going forward, over half said they would continue to search for the ‘right home’ in the same location, while 38% said they would expand their search area. However, historic data shows that the longer the search continues, the more apt the buyer is to stop searching and wait for another year or longer.
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Share of Home Buyers Getting Outbid Almost Doubles