Motivated by historically low mortgage rates and a larger share of homes for sale nationwide, 61% of prospective homebuyers in 2021 were actively trying to purchase homes. One year later, that share is back to pre-pandemic levels at just 46% as the added burden of rising inflation takes hold and a growing number of buyers are priced out of a more volatile market.
The share of active house hunters dropped in all four regions across the U.S., with the West coast seeing the largest decline from 72% in 2021 to 46% at the start of 2022. In the first quarter of 2022, 67% of active buyers spent upwards of 3 months searching for a home compared to 60% in 2021, NAHB Eye on Housing reports.
A growing segment of prospective home buyers aren’t moving past the planning stage. At its peak in mid-2021, 61% were actively trying to find a home to buy. Now, the share is back to pre-pandemic levels, at 46%. This is clear evidence that higher mortgage rates and double-digit growth in home prices are discouraging a growing share of buyers from engaging in the purchase process.
Fewer buyers in every region are actively searching for a home. From peak to now, the share dropped in the Northeast (72% to 50%), Midwest (51% to 40%), South (58% to 48%), and West (72% to 46%).
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