The hot home market is still a seller’s market with tons of potential buyers. The low-interest rates and low inventory have caused buyers to take risks. Buyers are having to make decisions a lot faster if they want to win the bidding war.
The National Association of Home Builders reported out of the 17% of prospective U.S. buyers, 61% of them are actively purchasing a home. This is not a new finding, as of this quarter, it has been reported that active buyers have been increasing for the last six straight quarters. This trend began in the last quarter in 2019 where it was reported at 43%.
The professionals in the industry can attest that this increase is due to several factors. We have seen more prospective buyers turn into active buyers in the past year and a half. The reason for this is low mortgage rates, buyers looking for more space and a new location.
The growth in prospective buyers becoming active buyers can be seen across every U.S. region. In the last quarter of 2019 46% of prospective buyers became active buyers and in the second quarter of 2021 66% of prospective buyers became active buyers in the Northeast, 40% to 50% in the Midwest, 43% to 58% in the South and 40% to 72% in the West.
If you are planning to purchase a home and want to turn from a prospective buyer to an active buyer now is a great time to take the plunge. Contact your local Realtor to help you with this journey into homeownership.