Eye On Housing
The share of prospective home buyers who are actively engaged in the process to buy a home rose to 49% in the second quarter of 2022, after declining for three straight quarters. The pivot is likely driven by less competition from buyers who have exited the market, which has encouraged many of those remaining to become active buyers. Except for… Read More ›
Tag Archive for ‘housing trends report’
The Mix of Home Buyers Is Changing, Leading to Improved Affordability
For the first time since 2020, affordability expectations improved in the second quarter of 2022. After rising steadily for five straight quarters, the share of buyers who can only afford a minority of the homes for sale in their markets declined to 77%, down from 81% a quarter earlier. Conversely, the share able to afford at least half the homes… Read More ›
Buyers’ Expectations of Housing Availability Improve
For the first time since 2020, prospective buyers expect housing availability to improve. After falling steadily for five quarters, the share expecting the home search to get easier in the months ahead grew from 17% to 22% between the first and second quarters of 2022. Less competition from buyers priced-out of the market by recent increases in mortgage rates is… Read More ›
Some Buyers Turning to New Construction
After falling steadily for five quarters, the popularity of new homes rebounded in the second quarter of 2022, as 21% of prospective buyers reported looking for a newly-built home – up from 19% a quarter earlier. A possible reason for this pivot is the recent growth in the inventory of new homes for-sale, while the supply of existing homes on… Read More ›
Housing Demand Flattens as 1st-Time Buyers Retreat
The share of adults planning a home purchase within a year stood at 13% in the second quarter of 2022, unchanged from the previous quarter, but lower than a year earlier (17%). The leveled reading suggests that, after shrinking for the past three quarters, the pool of potential home buyers may have stabilized. Part of the reason housing demand has… Read More ›
High Home Prices Are Leading More Buyers To Give Up Home Search
An earlier post revealed that 67% of buyers who were actively engaged in the process of finding a home in the 1st quarter of 2022 have spent 3+ months searching for a home without success. By far, the most common reason these long-term searchers cite for not having bought by now is their inability to find an affordable home (48%). … Read More ›
Fewer Prospective Buyers Are Actively Searching for a Home
A growing segment of prospective home buyers aren’t moving past the planning stage. At its peak in mid-2021, 61% were actively trying to find a home to buy. Now, the share is back to pre-pandemic levels, at 46%. This is clear evidence that higher mortgage rates and double-digit growth in home prices are discouraging a growing share of buyers from… Read More ›
Buyers Feeling Grim About Housing Affordability
Buyers’ expectations for housing affordability continue to sour. In the first quarter of 2022, 81% said they could afford less than half the homes for-sale in their markets – the highest share since before the pandemic. At its lowest point in the 4th quarter of 2020, 63% of buyers expected to afford <50% of the homes available. On the other… Read More ›
Buyers’ Perceptions of Housing Availability Fall Back to 2018 Levels
Buyers’ expectations of housing availability continue to worsen. At its peak in the 4th quarter of 2020, 36% expected the home search to get easier in the months ahead. After five straight drops, the share is now 17% – a level not seen since 2018. In contrast, 74% expect the search for a home to get harder/stay the same. Buyers’… Read More ›
High Building Materials Prices Erode Preference for New Construction
Preference for newly constructed homes skyrocketed in 2020, as buyers looked for homes with more square footage and amenities in which to work remotely, school children, exercise, etc. By the fourth quarter of 2020, 42% of prospective buyers preferred new construction. Since then, however, rising new home prices (driven by a 31% increase in the cost of building materials) have… Read More ›