Multiple Offers for Homes on the Market are Becoming More Common
In a sign that the inventory of for-sale homes remains tight, NAHB's quarterly Housing Trends Report reveals that more buyers are finding their home search delayed because of a rising number of multiple offers on the same property. The survey found 30% of active buyers reported getting outbid by another buyer in the second quarter of 2020, significantly higher than the comparable 18% share a year earlier.
The top reason long-time searchers (those spending more than three months looking for a home) haven't pulled the trigger continues to be the inability to find an affordable home (39%); however, that share is much lower than reported a year ago (50%).
Among these veteran house hunters who have been actively searching for a home for at least three months, they report they will take the following steps if the right home remains elusive in the months ahead:
- 51% will continue looking for the "right" home in the same preferred location;
- 37% will expand the search area;
- 21% is willing to accept a smaller/older home;
- 19% might buy a more expensive home; and
- 19% will give up on finding a home until next year or later.
The Housing Trends Report is a research product created by the NAHB Economics team with the goal of measuring prospective home buyers' perceptions about the availability and affordability of homes for sale in their markets.
Rose Quint, NAHB's assistant vice president for survey research, provides more details in this Eye on Housing blog post.