BrokerageIndustry News

Inventory declines hitting all price tiers

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A new report from online real estate marketplace Zillow Inc. shows the number of homes for sale nationwide fell 19.4 percent during the year ending Sept. 30.The Zillow Research report divides inventory on the site into three price tiers for each market covered. Nationwide, the upper tier showed the highest reduction in inventory at 22 percent, followed by the middle tier at 18.6 percent and the bottom tier at 15.3 percent. But in California, lower-priced homes, represented by the bottom tier, saw a greater drop in inventory -- 42.7 percent -- than the middle and upper tiers, which saw drops of 37.4 percent and 31.9 percent, respectively. That indicates a tight market for first-time homebuyers, who can typically only afford homes in lower price tiers."First-time homebuyers are being squeezed out of the market by falling inventory and the rapid influx of investors looking to buy basic homes to rent out to the growing population of people who have recently been foreclosed upon,...