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What’s Stopping Homebuyers From Making a Purchase?

With 53% of buyers actively searching for a home in Q1 2019, The National Association of Home Builders (NAHB) reports that the price of a home remains the biggest hurdle to homeownership.

The NAHB states that 46% of potential home buyers stated they are having trouble finding an affordable home. Not being able to find a home in the neighborhood of their choice was a barrier for 40% of potential buyers, and 38% said they couldn’t find a home with the features they want.

According to the report, the share of buyers who consider high prices the biggest hurdle fell 5 points when compared to 2018. The amount of people who couldn’t find a home in the proper neighborhood fell 2 points and there was no change for people who couldn’t find home with features they want.

Seniors are most likely to be actively searching for a home at 56%, with 50% of millennials actively looking to buy a home. Baby Boomers have the lowest share of people actively searching for a home at 41%. Potential buyers within Gen X came in at 42%.

The northeast has the most active potential buyers at 53%, which was followed by the west coast at 47%. The midwest has just 42% of people actively seeking a home.

A national poll states that 13% of adults in Q1 2019 are planning a home purchase in the next year, the NAHB reports.

The NAHB states that of those who were surveyed, 56% will continue to look for the “right” home in their preferred location, 41% will expand the search area and 30% are willing to accept a smaller or older home. Twenty-one percent may buy a more expensive home and 14% said they would stop looking “until next year or later.”

That 14% share of potential buyers who expect to stop looking is lowest report share in the past year. The previous low was 16%, which was recorded in Q1 and Q4 2018.

About Author: Mike Albanese

A graduate of the University of Alabama, Mike Albanese has worked for news publications since 2011 in Texas and Colorado. He has built a portfolio of more than 1,000 articles, covering city government, police and crime, business, sports, and is experienced in crafting engaging features and enterprise pieces. He spent time as the sports editor for the "Pilot Point Post-Signal," and has covered the DFW Metroplex for several years. He has also assisted with sports coverage and editing duties with the "Dallas Morning News" and "Denton Record-Chronicle" over the past several years.
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