Top 4 reasons active home shoppers can’t find a home to buy right now
National Association of Homebuilders economist Rose Quint just did a great chart set on why active home shoppers — those looking for 3+ months — can’t get into a home yet.
She notes the top reason right now is affordability. Existing home sales which comprise 87% of home sales have dropped 11% from their July 2022 peak, but new home prices still haven’t dropped much.
One reason is that builders give great incentives to buyers like closing cost credits to buy down interest rates, and home upgrades. This one way builders hold the line on pricing. But that is changing, and home shoppers might soon find deals emerging on new construction as well as existing homes.
Tied for second place is the inability to find a home in a desirable neighborhood and getting outbid by other buyers.
I was surprised about the bidding war thing, because Redfin recently showed a sharp decline in bidding wars, from almost 70% in late-2021 and first half of 2022, to 40% to end 2022. But 40% is still a competitive factor for buyers.
Click over to Rose’s post below to see another chart on what next steps home shoppers are taking if they don’t find a home in the next few months.
I’m also including an Affordability Tips post below that should help.
Please comment or reach out with questions.
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Reference:
– Unaffordable Prices Are Back on Top as Most Common Reason Buyers Can’t Make Purchase
This chart shows that active home shoppers can't find a home they can afford, can't find a home in neighborhood they want, can't find a home with features they want, or they get outbid.
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Check It Out: