Searched around area inhabited by ghosts (7)
I believe the answer is:
haunted
'inhabited by ghosts' is the definition.
(I've seen this before)
'searched around area' is the wordplay.
'searched' becomes 'hunted'.
'around' means one lot of letters goes inside another.
'area' becomes 'a' (maths abbreviation).
'hunted' going around 'a' is 'HAUNTED'.
(Other definitions for haunted that I've seen before include "Frequented by a ghost" , "Troubled by a ghost" , "Worried" , "Spooky" , "Possessed" .)