DataInvesting

Home search disconnect: Where buyers aren’t finding what they seek

Where should buyers start lowering their expectations?
  • A market mismatch is the discrepancy between the amount of inventory within a specific price bracket and the demand for that type of inventory by homebuyers.
  • The national market mismatch rate was 10.4 percent in a six-month period in 2016 that ended in September.
  • Houston and Dallas had the two highest mismatch scores, at 31.2 percent and 30.3 percent, respectively.

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In certain pockets of the housing market, demand for specific price ranges are causing a disconnect in available inventory and prices, according to a new report. Trulia's MarketMatch report shows 10.4 percent of home searches at a certain price point don't match that specific category's available inventory -- though some markets are seeing as much as three times that rate. While a market typically fluctuates based on the demand for a certain neighborhood, property type or price tag, this recent Trulia report takes a look at the changes based on search-specific budgets and tastes. In some cases, homes are appropriately priced but not in a desirable price range, or buyers are seeking homes in a price range in which not many properties are available. Looking at the national rate and in the 100 largest U.S. metros from March 15 to September 15, the national market mismatch was 10.4 percent, which is higher than the 8.3 percent market mismatch during the six-month period i...