"Today's home buyers have the ability to view homes online and quickly narrow down what they want to see versus what they can dismiss. Buyers can walk through virtual tours.".
Homebuyers who purchased a house last year only viewed an average of eight homes before making a purchase, according to a study published this month by the National Association of Realtors (NAR) on its website.
The report, conducted by Dr. Jessica Lautz, Vice President of Demographics and Behavioral Insights at the association, states that viewing eight homes before buying is the lowest number on record, noting that in 2009 and 2011 buyers viewed 12 homes before purchasing
The document states that for some buyers who signed multiple contracts and repeatedly lost bidding wars, this may seem very little; however, for others who found a limited housing inventory in their area, it may seem like a wide selection.
The research suggests that the existing inventory could be a factor in the situation, citing the case of 2009 and 2011 when there was an abundance of housing, following the Great Recession, which was a major global economic crisis in 2008, which began in the United States.
“During the housing boom years of 2004 to 2006, homes moved quickly, but you would typically see nine homes. Limited housing inventory likely played a key role here. If there are few homes for sale in a given price range, there are few homes to see. According to existing home sales data from November 2021, there are only 1.1 million units for sale, a 13.3 percent decrease from the previous year. However, one major change has occurred since 2006: technology,” the study notes.
Use of technology
Another factor that could be influencing this trend is the use of technology. While in 2006, 80% of buyers used the internet to search for homes, that figure has now reached 95%, the report states. “Today’s homebuyers have the ability to view homes online and quickly narrow down what they want to see versus what they can dismiss. Buyers can walk through virtual tours, watch videos, and view detailed photos in a way that the technology of 2006 did not allow. Of the eight homes viewed by buyers, three were seen only online through video tours or virtual open houses.”.
The report highlights that 5% of buyers do not use online tools in the search process, "but a similar proportion bought from the previous owner, whom they probably know or are familiar with the property.".
NAR understands that technology and inventory have likely influenced the number of weeks a buyer looks for a new home. "Buyers looked for only eight weeks before deciding which house to buy. It notes that from 2009 to 2013, those looking for housing took their time and looked at houses for 12 weeks.".
"Because the market moved at a slower pace, they could decide over a longer period of time and perhaps view a house several times before signing a contract. Today's buyers don't have that luxury and need to make quick decisions about which house to put on the market, as there is likely another buyer ready to jump in after them," the research states.
ABOUT NAR
The largest trade association in the United States, representing 1.5 million members, including NAR institutes, societies and councils, involved in all aspects of the residential and commercial real estate industries, according to its website.
"Our membership is comprised of residential and commercial brokers, salespeople, property managers, appraisers, advisors, and others involved in the real estate industry. Members belong to one or more of approximately 1,200 local associations/boards and 54 state and territorial associations of REALTORS®.".
