Homebuyer Activity Is Picking Up, but Bidding Wars Pose Extended Challenges

Despite a sudden increase in homebuyer activity, 70% of buyers who were actively engaged in the process of finding a home in Q3 2022 spent 3 or more months searching for a home without success, according to the latest Housing Trends Report, and 54% of all respondents cited bidding wars as the reason why. While the majority of prospective buyers are being outbid by other offers, 39% were unable to find an affordable home, while 30% had trouble finding a home in their desired neighborhood, NAHB Eye on Housing reports.

NAHB's recent report revealed that 50% of active buyers will continue searching for the right home in the same location even if they are unsuccessful after three months, 35% will expand their search area, 33% will adjust their expectations and search for a smaller/older home, and 28% will expand their budgets.

An earlier post revealed that a record 70% of buyers who were actively engaged in the process of finding a home in the third quarter of 2022 have spent 3+ months searching for a home without success. Those buyers also have higher incomes and education levels than in previous quarters. The most common reason these long-term searchers cite for not having bought by now is they are getting outbid by other offers (54%).

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