The home-buying landscape has changed due to the pandemic and record-high inflation. As interest rates have gradually increased this year, some buyers have been met with challenges. However, according to the National Association of Home Builders (NAHB), higher interest rates have priced out some buyers this year, but not all of them.
In the latest Housing Trends Report from NAHB, in the third quarter of 2022, 59% of prospective buyers had moved beyond the planning phase and become fully engaged in the buying process, up from 46% in the first quarter and 49% in the second quarter of the year. The report showed that the share of prospective buyers actively searching for a home rose in every region in the country.
The report also revealed that prospective buyers expect housing availability to improve. In the third quarter of 2022, 37% of buyers expect the home search to get easier in the months ahead. For-sale inventory and less competition from buyers are likely driving the improvement, according to NAHB economists. Housing availability expectations also improved across the country from the second to the third quarter of this year.
The housing market has changed recently, yet one facet of the industry has stayed the same: Homeownership remains the American Dream for millions of families. The most recent Census Bureau’s Housing Vacancy Survey (CPS/HVS) shows that about two-thirds (66%) of Americans are home owners and homeownership rates of adults in nearly all age groups increased over the last year (except those households aged 65 years and over).
Homeownership builds stronger communities, provides a solid foundation for family and improves the quality of life for millions of people. For today’s home buyers, new homes feature floor plans that suit modern lifestyles and include laundry rooms, ENERGY STAR windows and appliances, patios/front porches and walk-in pantries for convenience and comfort.
If you’re ready to start looking for a new home or would like information about the home buying process, contact your local association, here.