The NAHB Economics Team released a report recently on what home buyers are thinking and doing after searching for a home unsuccessfully for the last 3 months as of March 31st--
· The #1 reason (48%) why they haven’t bought yet is they can’t find a home at a price they can afford.
· 34% cited their inability to find a desirable neighborhood.
· 31% cited they can’t find a home with desirable features.
· 29% cited being outbid by other buyers.
I am honestly surprised that the last reason wasn’t the top reason. I wonder if the 2nd and third reasons are causing the #1 reason? In today’s RE market buyers must be open to many neighborhoods and even cities since inventory is at record low levels. And buyers can’t be too picky when it comes to desirable features which I assume means homes recently remodeled.
52% of these discouraged buyers said they will continue looking for the “right” home in the same location. That sounds like insanity. 19% will buy a more expensive home and 20% will accept a smaller/older home. I believe it’s this group who will be successful at buying a home.