The housing market is starved of starter and trade-up homes, making affordability more difficult, according to an analysis out Wednesday. The National Association of Realtors on Wednesday said it would take 3.8 months to exhaust the available inventory of existing homes, the lowest level for any February on record. Existing-home sales fell 3.7% in February. Data from real estate web site Trulia offers more details on the Realtors’ numbers. Inventory of starter homes – those in the lowest third of median pricing in the market – fell nearly 9% from the first quarter of 2016 to the first quarter of 2017. Trulia took a weighted national average of incomes across the 100 biggest metros and matched the median income in each third, assuming that earners in the bottom third of the income distribution would buy homes in the bottom third of the market, and so on.
Source: Market Watch