Will finding a home in this market get any easier?
Most buyers do not think so, according to the most recent National Association of Home Builders’ Housing Trends Report. Sixty-eight percent of buyers said that they believe finding a house will become more difficult or stay at the same level of difficulty in the coming months. Yet, that is down 2% year-to-year, showing buyers may be feeling slightly more optimistic this year.
However, younger buyers are feeling confident about the housing market. Only 64% of Generation Z feels that the house search will stay the same or get harder, compared to 66% of millennials, 67% of Generation X and 74% of baby boomers. Across the country, the Northeast and the South are the most optimistic, with only 66% of prospective buyers expecting home searches to get more difficult, compared to 68% of those in the Midwest and 72% in the West.
What kind of homes are prospective buyers looking for? Well, it depends on their budget. The report asked buyers how many homes on the market are both in their budget and likable to them. For the third quarter of this year, more than a quarter of buyers (29%) said they see more homes in their budget and favorable to them, down just 1% year-to-year. Perception about available homes in the market in general remained stable year-to-year at 59%.
Again, the younger generations are the most optimistic. Forty-one percent of Generation Z believes there are more homes that are affordable and in their budget on the market, compared to 32% of millennials, 23% of Generation X and just 18% of baby boomers. Nationwide, surprisingly, those in the West felt there are more homes in their budget and that they like more than any other region, at 36%. The Northeast was next at 30%, followed by the South at 27% and the Midwest at 23%.