Most of the homes available to buy are beyond the reach of most first-time buyers
Most of the homes available to buy are beyond the reach of most first-time buyers.
Inventory is down 9% year-over-year nationwide with more than half of those at the higher end of the market according to a new analysis from Zillow.
The availability of entry-level homes, affordable for most first-time buyers, is just 22% the firm’s March Real Estate Market Report reveals.
"This year's home-shopping season is shaping up to be even crazier than last, and sadly, the group that will have the hardest time is first-time and lower-income homebuyers," said Zillow Chief Economist Svenja Gudell. "These buyers will be competing for the few entry-level homes on the market, which are also the ones appreciating the fastest because of extremely high demand.”
He added that there are signs that things may improve with construction activity rising to its highest point in a decade, but demand continues to outpace supply.
The tight supply is pushing prices even higher with the US median price up 8% to $213,146. The median home value in San Jose rose 25% over the past year to $1,252,424, in Las Vegas home values rose 17% year-over-year, and there was a 15% rise in Seattle.
