The share of adults planning to make a home purchase in the next 12 months decreased from 15% to 13% on a quarterly basis in the fourth quarter of 2022, according to an analysis of the Housing Trends Report by the NAHB. The share of prospective first-time buyers considering a purchase peaked in the third quarter of 2022 at 66% as consumers attempted to stay ahead of further interest rate hikes.
The share of adults with plans to buy a home within a year changed unevenly across regions from the third to the final quarter of 2022, dropping in the Northeast (15% to 11%) and West (20% to 14%), staying flat in the South (at 14%), and edging up in the MW (9% to 10%).
Over half of all prospective buyers in every region are first-time buyers. From the third to the fourth quarters of 2022, however, the 1st-timer share dropped in three regions: the Northeast (70% to 64%), the South (66% to 60%), and the West (70% to 62%). Meanwhile, and for the second quarter in a row, the share edged up slightly in the Midwest, from 56% to 58%.
Results come from the Housing Trends Report (HTR) – a research product created by the NAHB Economics team with the goal of measuring prospective home buyers’ perceptions about the availability and affordability of homes for-sale in their markets. The HTR is produced quarterly to track changes in buyers’ perceptions over time.Read More