RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
RISMedia
No Result
View All Result

Buyers Confronting ‘Perfect Storm’: Trulia

Home Latest News
By Suzanne De Vita
March 26, 2018
Reading Time: 2 mins read
Buyers Confronting ‘Perfect Storm’: Trulia

Choosing the perfect house standing out from all the others, isolated on a white background

First-time homebuyers are in for it this spring, with an all but depleted inventory at their price point, according to the Q1 2018 Inventory and Price Watch from Trulia. Their challenges, however, are more than scarcity.

“First-time homebuyers face a perfect storm this spring,” says Cheryl Young, senior economist at Trulia. “Affordable, move-in ready starter homes have become harder to find amid rising home prices and mortgage rates. While new-home construction hit a 10-year high in 2017, these units have not translated into starter-home inventory just yet.”

Entry-level home prices have risen 9.6 percent since the first quarter of 2017, according to Trulia, and inventory in the segment shrunk 14.2 percent just in the first quarter of 2018. The average buyer would need 41.2 percent of their income to purchase a starter today.

“Builders are focusing on the more upper-middle or premium home segments—mostly because of returns on investments,” Young says. “Though builder sentiment is quite high, they have some headwinds around a shortage of labor. The focus now is trying to maximize their return, and, unfortunately, it’s not at the bottom of the market.”

In general, inventory has risen 3.3 percent, but is being driven mostly by the premium segment, which added 13.3 percent supply year-over-year. Breaking down the data:

Trulia_Q1_Inventory_2

In addition to affordability constraints, the condition of entry-level homes is fading. Compared to entry-level homes in 2012, the average entry-level home is nine years older, and more are becoming classified as fixers—an 11.2 percent share today, versus a 10.3 percent share in 2012. Moreover, entry-level homes have 2 percent less square feet (down to 1,187 square feet from 1,211 square feet). Why?

“What’s actually out there is getting tighter, and what may have been on the cusp of the starter/trade-up is now trade-up—everything is starting to spread,” says Young. “What’s filtering down in the starter home market now is the smallest, oldest, lower-quality homes.”

For more information, please visit www.trulia.com.

DeVita_Suzanne_60x60Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

Tags: First-Time HomebuyersHome PricesHousing Inventoryreal estate newsTruliaTrulia Inventory Price Watch
ShareTweetShare

Suzanne De Vita

Related Posts

WATCH: The Art and Science of Negotiation
Agents

WATCH: The Art and Science of Negotiation

May 16, 2022
Biden Revives Housing Priorities in New Roadmap
Agents

Biden Revives Housing Priorities in New Roadmap

May 16, 2022
BHGRE Announces Affiliation of Green Lake, Wisconsin Firm Special Properties
Agents

BHGRE Announces Affiliation of Green Lake, Wisconsin Firm Special Properties

May 16, 2022
Don’t Get Burned: Fire Risk Database Informs Consumers
Agents

Don’t Get Burned: Fire Risk Database Informs Consumers

May 16, 2022
Mortgage Market Strain Starts to Squeeze Major Players
Agents

Mortgage Market Strain Starts to Squeeze Major Players

May 16, 2022
4 Tips to Instantly Improve Your Facebook Strategy
Agents

4 Tips to Instantly Improve Your Facebook Strategy

May 16, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

How Agents Turn Low Home Inventory Into a Marketing Advantage

By targeting the right prospects, creative messaging, and using proven marketing tactics, you can break through the crowded marketplace and... See How

Business Tip of the Day provided by

Recent Posts

  • WATCH: The Art and Science of Negotiation
  • Biden Revives Housing Priorities in New Roadmap
  • BHGRE Announces Affiliation of Green Lake, Wisconsin Firm Special Properties

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kitt Email Whitelist Terms & Policies

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.