Further analysis of the National Association of Home Builders Housing Trend Report (HTR) for Q2 of 2021 reveals that of the 17% of American adults considering a future home purchase, 61% have moved beyond planning and are actively searching to find one to buy. This marks the sixth consecutive quarter of growth, a trend that started in Q4 of 2019, when it was at 43%.
In the past year and a half, low mortgage rates, a desire for more space and a desire for a new location in the suburbs/exurbs have all been contributing factors that have turned more prospective buyers into active ones. The share of prospective buyers who are actively searching for a home has grown in every region of the US. From Q4 of 2019 to the Q2 of 2021, the share went from 46% to 66% in the Northeast, 40% to 50% in the Midwest, 43% to 58% in the South, and 40% to 72% in the West.
On the downside, as the share of prospective buyers actively searching for a home continues to increase, the time spent in the search continues to grow. In Q4 of 2019, 57% of buyers actively engaged in the purchasing process spent 3+ months looking. By Q2 of 2021, that share was 66%.
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Prospective Buyers Continue to Turn into Active Buyers