Absolutely no remedies on the horizon for starter home deficiency

First-time home buyers have experienced a heck of a time finding a starter home to purchase during the past couple of years – and that’s not about to get any better, according to recent research by Trulia.

Absolutely no remedies on the horizon for starter home deficiency

In Q4, national housing inventory dropped for the sixth consecutive quarter, declining 9.1% from 2015.

But the inventory shortage is disproportionately impacting the starter home market – the amount of available starter homes dropped 12.1 % over the last year.

Meanwhile, the median purchase price for those homes skyrocketed, making the dream about home-ownership over the budget, or at least harder to acquire.

Buyers who are trying to find a trade-up home are being hit hard too. The number of trade-up homes on the market has declined 12.9 % year-over-year. The share of those homes has dipped yet another 1.2% year-over-year to a 24% share.

The number of premium homes on the market decreased 5.6% from 2015, however the share of those homes increased from 49.9Z% to 51.1% in 2016.

Some experts are forecasting that first-time buyers will capture a larger share of the market in 2017, but if Trulia’s research holds true over the upcoming year, those experts’ hopes may soon be tossed in the trash.

But starter home owners, who are also most likely first-time buyers, are being priced out of home-ownership.

This quarter, starter home owners are spending 38.5% of their take-home income on mortgage costs – 2.5% higher than the recommended share prescribed by lenders. Furthermore, it’s 13 percentage points higher than what trade-up homeowners pay, and a staggering 24.6% points above what premium-home owners shell out each month.

Finally, the starter-home inventory shortage is squeezing residents on the East and West coasts in cities such as Sacramento, California, plus San Francisco, San Diego, Los Angeles and Miami.

Why wait for homes to show up on the consumer sites and all the good ones are already gone. Nick & Cindy Davis can set up your search in MLS so that the minute a home is activated you will be notified immediately. To get started give us a call at 813-300-7116 or simply click here and we will be in touch.

Take a look at a few of the most recent homes that came on the market here in the Tampa Area.

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7338 E Bank Drive, Tampa, FL

7338 E Bank Drive
Tampa, FL

$179,900
- Lot Size
  
  872 sqft
- Home Size
  
  1,364 sqft
- Beds
  
  3 Beds
- Baths
  
  3 Baths
- Year Built
  
  2004
- Days on Market
  
  3