DataMarkets & Economy

Home inventory is shrinking, but where does it really matter?

Trulia reports on home inventory and the rising price of starter homes plaguing first-time buyers
  • Trulia Inventory and Price Watch report measured the inventory of starter homes, trade-up homes and premium homes throughout the nation.
  • Premium homes have taken over 51.3 percent of the market share as of Q2 2016.
  • Inventory of both starter homes and trade-up homes has fallen in the past year leading up to Q2 2016.

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The stock of available homes throughout the nation has taken a dip over the past four years, but that doesn't mean prices are hiking in all markets, according to Trulia. The website's Inventory and Price Watch report offers insight into localized inventory levels and affordability broken down by sectors: starter homes, trade-up homes and premium homes -- and while California unsurprisingly has higher prices because of low inventory, an even larger metro hasn't seen the same effects. The report looks at the national housing stock in the 100 largest metros between April 1, 2015, through April 1, 2016, finding that home inventory is down throughout the nation by more than 6 percent. Out of the three sectors measured, starter homes saw the biggest dip. Inventory of starter homes fell 12.3 percent in the past year leading up to April 2016, and the share of starter homes fell from 25.6 percent to 23.9 percent. And, unfortunately for buyers, with the fall of inventory comes the ri...