July 9th, 2019
Recent data from Trulia shows that inventory is rising for starter homes and trade-up properties—but likely not enough to satisfy demand. According to the real estate marketplace’s recent analysis, starter home inventory was up 3.5% last quarter, while trade-up options rose 4.8%. The catch? The upticks also came with 12.4% and 8.3% hikes in price, respectively.
As LendingTree’s chief economist Tendayi Kapfidze explains, “There has been an increase in supply compared to last year, but levels are still quite low. Supply is particularly lacking at lower price points.”
According to Kushi, total housing stock is well below the nation’s pre-recession average, and though an upward trend in starter home inventory may help, its mostly higher-priced markets that will benefit—particularly those along the West Coast, like San Jose, Los Angeles and Seattle.