SAN FRANCISCO, Dec. 14, 2017 /PRNewswire/
-- Today, Trulia®, a home and neighborhood
resource for homebuyers and renters, released the findings
from its quarterly Trulia Inventory and Price Watch. This quarter's
report found that while starter and trade-up home inventory
decreased again at double-digit rates, premium homes saw the
biggest declines in more than four years, at 5.9%. In addition,
homes are now the most unaffordable since Trulia started keeping
track in 2012.
2017 Q4
Inventory
|
Change, 2016 Q4 -
2017 Q4
|
Housing
Segment
|
Median
List
Price
|
Share
|
Inventory
|
% of
income
needed
to buy
median
price
home in
segment
|
%
change in
median
list price
|
Percentage
point
change
in share
|
%
change
in
inventory
|
Additional
share of
income
needed to
buy a home
(percentage
point
change)
|
Starter
|
$178,034
|
22.9%
|
237,361
|
39.8%
|
8.0%
|
-1.9 pts
|
-19.0%
|
1.7 pts
|
Trade-Up
|
$302,893
|
24.0%
|
250,852
|
25.8%
|
5.9%
|
0.0 pts
|
-11.4%
|
0.6 pts
|
Premium
|
$631,358
|
53.1%
|
559,252
|
14.0%
|
6.8%
|
+1.9 pts
|
-5.9%
|
0.3 pts
|
U.S. Housing Inventory Decreases 10.5% in the Fourth
Quarter
In the fourth quarter, U.S. housing inventory saw its steepest
fall since 2013, dropping 10.5% from this time last year, with the
biggest drop across housing segments occurring among starter homes.
While starter and trade-up homes took another dip this quarter,
premium homes also saw an uncharacteristically large drop of 5.9%
from this time last year. Metros that led the charge in the premium
dip, included San Jose, Calif.,
Salt Lake City and Rochester, N.Y.
Markets with
Largest Decrease in Premium Home Inventory in the Last
Year
|
U.S.
Metro
|
% Change in
premium inventory
|
Percentage point
change in inventory share
|
Starter
|
Trade-up
|
Premium
|
San Jose,
CA
|
-41.7%
|
-3.4%
|
-2.6%
|
6.1%
|
Salt Lake City,
UT
|
-38.1%
|
10.3%
|
3.4%
|
-13.7%
|
Rochester,
NY
|
-30.5%
|
2.7%
|
1.4%
|
-4.1%
|
Colorado Springs,
CO
|
-27.3%
|
-7.4%
|
-3.8%
|
11.2%
|
Bakersfield,
CA
|
-27.0%
|
0.9%
|
-2.1%
|
1.2%
|
Despite Sharp Fall, Premium Homes Still Occupy Larger Share
of the Market
Amid the biggest year-over-year drop in inventory, premium homes
now occupy the largest percent of the market than any quarter since
2012. Adding to the obstacles for first-time buyers, premium homes
now account for 53.1% of all available inventory. Since this time
last year, the percentage share of the market of premium homes
increased 1.9 percentage points. This compares to no change in
trade-up homes and a 1.9 percentage-point drop in starter homes.
Among the 100 largest U.S. metros, eight of the top 10 markets that
saw the largest fall in premium inventory are still seeing an
increase in the share of premium homes on the market. While premium
homebuyers are seeing historic dips, it is starter home buyers that
are feeling the impact.
Starter Homebuyers Continue Feeling Unaffordability
Pinch
Paired with falling inventory and an increasing share of premium
homes, declines in affordability plagued homebuyers, specifically
those looking for starter homes. Across the national housing market
and across all segments, homes are the most unaffordable they have
been since 2012 and today, first-time homebuyers will need to spend
39.8% – nearly a third more than the amount recommended – of their
monthly income to buy a starter home – a 1.7 percentage point
increase from last year. Comparatively, trade-up and premium
homebuyers will need to spend 25.8% (up 0.6 percentage points from
the same period a year ago) and 14.0% (up 0.3 percentage points
from last year) of their income to buy a home, respectively.
QUOTES FROM TRULIA'S CHIEF ECONOMIST RALPH MCLAUGHLIN:
- "While the inventory crunch continues, I'm cautiously
optimistic that 2018 will be a year for inventory rebound. Not only
is American optimism about selling homes at levels not seen since
2014, 16% of homeowners plan to sell a home in the next two years.
If we see them follow through, there may finally be an uptick in
inventory."
- "While the number of premium homes on the market have seen a
sharp fall, they continue to make up a larger share of the for-sale
market, which spells trouble for first-time homebuyers. Coupled
with record-low inventory, saving enough money for a down payment
will continue to be their biggest obstacle to homeownership."
About the Trulia Inventory and Price Watch
The Trulia
Inventory and Price Watch offers buyers and sellers deeper insight
into the change in supply and affordability of homes, within three
different segments of the market: starter homes, trade-up homes,
and premium homes. Based on the for-sale homes listed on Trulia,
this report calculates housing inventory within each segment
nationally and in the 100 largest U.S. metros, from Oct. 1 to
Dec. 1, 2017. For the full report and methodology,
see here.
About Trulia
Trulia is a vibrant home shopping
marketplace, focused on giving homebuyers, sellers,
and renters the information they need to make better
decisions. On mobile and the Web, Trulia provides house
hunters with insights and unique information about properties,
neighborhoods, and real estate agents. Additionally, Trulia
offers data and information about schools, crimes, commute times,
and the real estate market.
Launched in 2005, Trulia is based in San Francisco and
is owned and operated by Zillow Group (NASDAQ: Z and ZG).
Trulia is a registered trademark of Trulia, LLC.
MEDIA CONTACT:
Debbie Baratz
pr@trulia.com
415-757-2299
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SOURCE Trulia