The median value of a US home rose 8% to $213,146 while inventory shrunk by 9%
The U.S. housing market narrowed by 9 percent over the past 12 months, with the majority of available inventory out of reach for all but the highest earners, according to a new Zillow report.
With inventory in decline since 2015, home hunting this summer is expected to be among the most competitive seasons on record, with only about 22 percent of the available stock of 1,224,336 homes priced for first-time homebuyers, according to Zillow's March Report.
Home values nationwide have risen 8 percent year-over-year since March 2017, to a median of $213,146, with more than 51 percent of all available homes now priced on the high end, according to Zillow, which defines that category as home prices hovering around $375,000.
"This year's home-shopping season is shaping up to be even crazier than last, and sadly, the group that will have the hardest time is first-time and lower-income homebuyers," said Zillow Chief Economist Svenja Gudell on Thursday. "These buyers will be competing for the few entry-level homes on the market, which are also the ones appreciating the fastest because of extremely high demand."
Although cities such as Washington and the Dallas-Fort Worth metro area did experience an inventory spurt, the overall national trends show that those who want to buy an affordable home are in for a challenge. "There are some signals a shift may be coming — construction activity is at its highest point in a decade — but buyers shouldn't hold their breath," said Gudell.
- Inman News, April 26, 2018