The Most Common Reason Active Buyers Can’t Close the Deal

Filed in Economics, Trends by on May 11, 2021 1 Comment

A recent Eye on Housing blog post revealed that 64% of buyers who were actively engaged in the process of finding home in the first quarter of 2021 have spent upwards of three months searching for a home without success.

The most common reason long-time searchers have come up empty-handed is not because they can’t find a home at an affordable price (32%), but because they continue to lose out in bidding wars (45%), according to survey results from NAHB’s most recent Housing Trends Report.

The reasons are flipped from a year earlier, when 40% cited unaffordable prices and only 23% because of better offers by other buyers.

When asked what they are most likely to do next if still unable to find a home in the next few months, 50% of active buyers searching for three-plus months will continue looking for the ‘right’ home in the same location – about the same percentage as a year earlier. On the other hand, 42% will expand their search area, an increase from the 34% willing to take that step a year earlier.

Difficulties finding a home to buy will likely lead 25% of active buyers to give up until next year or later, up from 16% a year earlier. Historical data show a steadily rising trend in the share of long-term searchers likely to quit looking for a home until next year or later, as the latest increase marks the fifth year-over-year rise in this metric.

Rose Quint, NAHB’s assistant vice president for survey research, provides more analysis in this Eye on Housing blog post.

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  1. Buyers also need to learn and practice to close the selling real estate broker!

    Learn the “Art of Closing” which you can teach homebuyers through the NAHB National Sales and Marketing Council(NSMC) participation!

    Joseph McGaw 202.266.8693 jmcgaw@nahb.org!

    ONwards and UPwards with Health and Cheers!

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