Buyers Are Realistic About Housing Shortage Challenges

House hunters are realizing they may need to expand their timelines to find a home. While they’re still anxious to buy, they are getting the messages about the competitive housing market and fierce bidding wars that they realize may delay their plans.

The share of consumers who hoped to buy a home in the next six months plummeted from 34% a year ago to 21% this year, according to a newly released homebuyer flash survey conducted by Point2 Homes, an online real estate marketplace.

But it’s not from a lack of eagerness: 50% of respondents said they were determined to buy as soon as they find the right property.

As one survey respondent from Dallas said, “I’ve been looking since December 2020 for a home but everyone keeps taking them off the market or increasing their pricing at a ridiculous amount.”

Concerns about housing shortages are increasing. But fewer respondents this year appear worried about their personal financial stability.

As such, the higher home prices aren’t scaring them away. Fifty-one percent of the more than 2,600 respondents said they were confident that the steep price hikes would not be a problem in their house hunt. On the other hand, 45% of consumers surveyed said they did not believe they’ll be able to keep up with the price hikes.

Also, buyers are still showing an interest in virtual home tours to shop for homes, but that interest does seem to be waning in favor of a return to in-person viewings. Interest in online pictures declined, while 11% of respondents expressed an interest in going to showing this year compared to just 4% last year, according to the Point2 Homes survey.

“Home seekers all across the U.S. remain positive about the home buying process, and seem more determined than ever to find the perfect home,” the report says. “Although the competition is fiercer than it has been in the past, many Americans are keeping their eyes on the market and are willing to play by the new rules—which imply more preparation, higher offers, and going through bidding wars without losing hope.”

 

Source: “Changes in Homebuyer Behavior & Expectations 1 Year Into the Pandemic”