Home buyers have not only struggled to contend with double-digit price hikes; they’re also having difficulty purchasing homes because of bidding wars. For only the third time in the history of NAHB’s Housing Trends Report, the top reason buyers are struggling to buy a home is because they are getting outbid (45%).
For reference, in the first quarter of 2018, only 18% of prospective buyers indicated that bidding wars were an issue in their home-buying process. Affordability remains a concern (36%), along with finding a home in the right neighborhood and desired features.
Nearly half of buyers (49%) indicated, though, that if they are unable to find a home in the next few months, they will continue searching for the "right" home in the same location. Almost 30% said they would also be willing to buy a smaller or older home, up from 24% the previous quarter.
Rose Quint, NAHB assistant vice president for survey research, provides more details in this Eye on Housing post.