Prospective homebuyers are taking more time to find a home due to affordability problems and bidding wars. Home prices are increasing due to a shortage of homes to sell. First-time buyers will struggle to buy a home, even if mortgage rates stay low.
The pandemic hasn’t discouraged Americans from buying homes. According to the second quarter of 2020’s Housing Trends Report, 11% of respondents are potential home buyers (planning to buy a house within 12 months), basically unchanged from a year earlier (12%). The data was collected between June 16-28.
The pandemic has had little impact on Americans’ desire to buy a home. | Source: Eye on Housing Housing Affordability Remains A Big Problem
The report reveals that only 24% of prospective buyers can afford more than 50% of homes available for sale. Although these results show that housing affordability remains a significant challenge, buyers’ expectations for affordability are slightly more favorable than a year ago, when only