Top 5 Reasons Buyers Quit House Hunting

September 26, 2021 Hadley Ott

Based on several reports I’ve recently reviewed, I’m seeing the following to be the top five reasons Buyer’s are calling off their house hunting…at least for now.

It is no secret the market has been more competitive than we could have ever anticipated amidst a global pandemic. Buyers have had to step up to the plate like never before and have several others swarming around with heated competition across most markets just to win. Higher offer prices, aggressive terms, minimal (if any) contingencies, and tight timelines are just some of the things we’ve seen consistently expected by Sellers in a Buyers purchase contract.

These things have lead to, well, general burnout. Surprising? Not really – conditions like these would seem to reach a ceiling where Buyers take a step back to reevaluate their investment opportunities. While interest rates are still primarily attractively low, other market conditions and obligations have resulted in about 40% of Buyers to bring the house hunt to a halt. (1)

According to an Opendoor survey, buyers are calling their house hunts of because of:

1) Uncertainty with COVID-19

2) Intimidating Market Conditions

3) Limited Inventory

4) Haven’t Decided Where to Live Next

5) Already Lost Out on a Few Homes Due to the Competitive Market (2)

All of these have very valid arguments and show intentional decision making even if the circumstances are challenging. For example, someone sold their home anticipating another purchase but cannot determine where they want to live next; instead they are looking for short-term housing or making arrangements with family/friends to accommodate the gap period.)

In the same survey, Opendoor found the following to be the top concerns from home Buyers in the current marketplace – which I can say assuredly that I’m seeing with my clients too!

a) Finding a Home I LOVE within my Budget

b) Paying Too Much Just to “Win It”

c) Finding a Home in the Neighborhood I Want to Live In

d) Fluctuating/Rising Interest Rates

e) Discovering Major Issues after Purchasing (3)

Here’s something to consider though…

We are already seeing seasonal slow downs in our market and, admittedly, I have found fall/winter to be a strategic time for Buyers to house hunt in the Denver Metro Market because there are opportunities to be had. (Certainly these could exist anytime throughout the year, but seasonal Buyer opportunities seem to be at their peak during this time of year.)

SO, taking all this into consideration I’m suggesting still keeping an eye on the market, a toe in the house hunt, and an open mind for opportunities… they could be just around the corner 😉