More Prospective Buyers Turn Active With Millennials Leading the Trend
Prospective homebuyers are quickly turning into active buyers this year, hoping to take advantage of low mortgage rates and snag homes with more space. The National Association of Home Builders found that of the 16% of Americans considering a future home purchase in the first quarter of 2021, 63% have turned into active buyers. Last year, 49% of prospective buyers from the first quarter turned active. This marks the fifth consecutive year of annual gains in the share of prospective buyers turning active. NAHB says this is likely due to buyers wanting to take advantage of low mortgage rates, desire for more space, and desire to move to the suburbs.
Millennials are the most likely generation to have moved on from just planning a home purchase to actively searching for a home to buy: 73% of this generation’s prospective buyers were already active buyers in Qtr1’21, up from 54% a year earlier. In contrast, the share rose only moderately among Gen Z and Gen X buyers, and not at all among Boomers.
Geographically, larger shares of prospective buyers in every region are actively trying to find a home to buy than a year ago, but the increase is most notorious in the Northeast (56% to 74%) and the West (51% to 69%).