In their recent Inventory & Price Watch report, Trulia reported that, while the national housing inventory has risen 3.3% over the last year, the available inventory of starter homes has hit a 6-year low. In addition, they report that the quality of available starter homes appears to have diminished and are less likely to be move-in ready with fixer-uppers constituting 11.2% of the market, compared with 10.3% in 2012.
“First-time home buyers face a perfect storm this spring. Affordable, move-in ready starter homes have become harder to find amid rising home prices and mortgage rates. While new home construction hit a 10-year high in 2017, these units have not translated into starter home inventory just yet.” Said Cheryl Young, Trulia’s Senior Economist.