Down 12.1% since 2015, but rising interest rates may ease shortages in some markets.
The number of homes for sale accessible to the average first-time home buyer saw its steepest year-over-year drop in three years, falling 12.1% since 2015, according to the Trulia Inventory and Price Watch report, released Wednesday. It also found that these buyers will need to pay 1.9% more of their income on average to buy a starter-home in their local market.
Nationally, housing inventory fell for the sixth consecutive quarter, dropping 9.1% from a year ago. Across different housing segments, home buyers saw the biggest decreases in starter and trade-up home inventory. The number of starter homes and trade-up homes on the market dropped 12.1% and 12.9% from this time last year, respectively. Meanwhile, premium home inventory fell a more moderate 5.6%.