July 12, 2022
As home prices continue rising, consumers in the market for a new home are slowly dropping out of the race. According to data released by NAHB’s Housing Trends Report, 67% of consumers who were actively house hunting in the first quarter of 2022 have spent at least three months unsuccessfully searching for a home. Affordability continues to top the list as the most common reason active house hunters have yet to purchase. Location, desired features and being outbid by other buyers were also cited as top barriers to purchase.
While this may not be breaking news, we are seeing an upward trend among active house hunters who have indicated they are going to pause their home search until next year or even later. Factor in the local impact of continuously rising house prices (3.4% higher versus Q4 of 2021), a decrease in total permits (down 32% versus same time last year) and rising interest rates, and the number of active house hunters dropping out of the market (25%) is enough to cause pause.
Do not be discouraged. Most active house hunters (52%) plan to continue their search. And many experts believe the cooling market may be enough to shift the tides and give active house hunters more control in the coming months. Given this, prepare your active house hunters for a marathon versus a sprint. Sprinkle in a little patience and the right home will be found.
If you need help finding a builder, developer, remodeler, contractor, or professional services related to residential construction, contact the Home Builders Association of Greater Cincinnati.
Post contributed by:Lora Brand | Executive DirectorHome Builders Association of Greater Cincinnati