Homebuyers Are Making a Mid-Correction Comeback, but Many Aren’t Finding What They’re Looking For

The share of prospective buyers searching for a home rose in every region across the U.S. from the second to the third quarter of 2022, even as rising interest rates continue to send borrowing costs to new highs, the National Association of Home Builders’ Eye on Housing reports. By the third quarter of the year, 59% of U.S. buyers had moved beyond the planning stages to become fully engaged in the buying process, a substantial gain from 46% in Q1 and 49% in Q2.

Despite a sudden uptick in demand during the second half of the year, active buyers are still having a hard time finding what they’re looking for. A record 70% of all buyers surveyed in the most recent Housing Trends Report have spent three or more months searching, up from 63% a quarter earlier.

The share of prospective buyers actively searching for a home rose in every region between the second and third quarters of 2022: Northeast (54% to 62%), Midwest (51% to 53%), South (39% to 51%), and West (57% to 68%).