The Number of Prospective Buyers Turning into Active Buyers Continued to Grow in Q2 2021
Prospective Buyers Continue to Turn into Active Buyers
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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