What is delaying potential buyers from taking the plunge to purchase?
According to the National Association of Home Builders, it’s affordability. Half of buyers in a recent survey, who have been looking for a home for a minimum of three months, said they haven’t bought a home yet because they can’t find a home they are able to afford, an increase of 5% year-to-year. Meanwhile 43% said they can’t find a home in the neighborhood they want to live in. Only 40% cited the actual homes on the market instead, saying that they have yet to find a house that has all of the features they want.
“I find that the buyers I am working with are right in step with the stats in the article. If the buyers are having a difficult time finding a home, I start asking them to make decisions based on the issues. It could be to change location or maybe change the wish list or possibly, if qualified, bump up the price range. I am currently working with buyers who are a lovely family and very serious about purchasing, but unfortunately, they can’t make any changes to their criteria and are having a difficult time finding a property that meets their needs. Occasionally, a home comes up that meets their specs and I’ll show them, but it hasn’t been ‘the one’ yet,” said PAR President-elect Bill Festa.
Nearly two-thirds in the NAHB survey reported they will continue to look for their dream home in the same area, waiting for the right inventory to come in. Thirty-six percent said they plan to continue to search in the same area, but extend the search to have bigger perimeters. Twenty-one percent said they can revamp their wants and will consider a smaller or older home that needs more DIY. Sixteen percent said they are expanding their budget and will considering spending more on a home in their preferred area. A final 16% said they are putting homeownership on the back burner, planning to take the next year – or more – off from searching for a home. This is an increase of 2% from the first quarter of 2019, but equal to year-to-year statistic.