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Takeaways:
- In the lowest-priced third of homes for sale, the inventory of homes on the market fell in 28 of the nation’s largest 35 metro areas since the same period last year, according to Zillow’s quarterly inventory report.
- Hardest hit were Charlotte, North Carolina; San Antonio, Texas; and San Diego, according to the survey.
- Home values also rose 3.3 percent from June 2014.
You’ve finally saved up that down payment. You’re ready to take advantage of low mortgage interest rates. But you can’t find a home in your price range.
Unfortunately, you’re not alone.
While home sales may be on a seasonal hot streak, the downside to the uptick in housing market activity is that increased competition may push some buyers out of the market, online real estate marketplace Zillow warned today.
On the heels of the National Association of Realtors’ report that pending home sales backslid slightly in June, Zillow noted in its first-quarter Real Estate Market Report that the decline was comprised mostly of the lowest-value homes sought by first-time homebuyers.
According to the quarterly report, in the lowest-priced third of homes for sale, the inventory of homes on the market fell in 28 of the nation’s largest 35 metro areas since the same period last year. Hardest hit were Charlotte, North Carolina; San Antonio, Texas; and San Diego, according to the survey.
By comparison, among the highest-priced homes, inventory fell year over year in only 10 of the nation’s largest metro areas. Inventory of all homes for sale nationwide fell 6.5 percent year over year.
Home values also rose 3.3 percent from June 2014, further challenging buyers, especially in hot markets like Denver, and San Jose and San Francisco, California, which saw the highest home value appreciations from last year, Zillow said.
Historically low mortgage rates and affordable rent are keeping homes affordable, but that won’t do buyers any good if they can’t find a house, Zillow noted.
“Low inventory levels like those we’re seeing across the country can bring the homebuying process to a screeching halt,” said Zillow Chief Economist Stan Humphries. “In many markets, there just isn’t a lot to choose from.”
