Prospective Buyers Frustrated by Bidding Wars, but Continue to Search
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.
Latest from NAHBNow
Sep 05, 2025
Mortgage Rates Hit 10-Month Low in AugustAverage mortgage rates in August continued their steady decline and are now at their lowest rate since last November. But rates are still higher year over year.
Sep 04, 2025
Home Building Lot Shortage ContinuesAlthough lot shortages are not quite as widespread as they were in 2021, obtaining lots remains a challenge for many home builders, according to recent results from the NAHB/Wells Fargo Housing Market Index (HMI) survey.
Latest Economic News
Sep 05, 2025
Job Growth Slowed in AugustJob growth slowed sharply in August, and the unemployment rate rose to its highest level in nearly four years.
Sep 04, 2025
Lots Still in Relatively Short SupplyAlthough shortages are not quite as widespread as they were in 2021, obtaining lots remains a challenge for many builders, according to recent results from the NAHB/Wells Fargo Housing Market Index (HMI) survey.
Sep 04, 2025
HVAC in New Construction in 2024Almost all of new single-family homes started in 2024 used either an air/ground source heat pump or a forced air system for the primary heating equipment (97%), according to the Census’s Survey of Construction. Additionally, 20% percent of homes also used a secondary type of heating equipment.