According to an article by Rose Quint for the NAHB’s Eye on Housing blog, of the 17% of adults planning to purchase a home in the second quarter of 2021, “61% have moved beyond planning and are already actively trying to find one to buy.”
Starting after the final quarter of 2019, where it stood at 43%, the share of active buyers in the housing market has increased for six straight quarters, according to that same article.
There are many factors that have contributed to the steady increase of prospective buyers turning into active buyers. For example, while mortgage rates have fluctuated during the past year, they have stayed relatively low with today’s 30-year fixed-rate mortgage at 2.98% and a 15-year fixed-rate mortgage at 2.28%, according to Justin Jaffee at c|net.
Other factors include pandemic-induced desires like the desire for greater living space and the desire to move away from urban, infill spaces to more suburban areas.
As one of the only shining lights, economically, during and after the pandemic, the homebuilding industry has struggled to accommodate the increased desire for homes. Dealing with building material supply constraints, scarcity of available lots and rising costs, homebuilders have had to be creative in order to meet demand. With the number of active buyers continually increasing, the homebuilding industry will continue to have to create solutions and advocate for itself in order to tackle these issues.
According to Quint, the share of prospective buyers who turned into active buyers in the market grew in every region of the United States; however, concurrently, the time that active buyers spent searching for their new homes also experienced an increase.