In recovering housing market, the starter home remains elusive

By David Randall and Nichola Groom | Reuters

Seeking a yard for her two dogs and proximity to her new government job, Alison Owen set out to buy a home this spring in the hot market of Austin, Texas.

Owen’s real estate agent warned the 28-year-old that she would face stiff competition in the market for entry-level homes – and he wasn’t kidding.

Owen had to offer $215,000 for a property listed at $198,000 to fend off at least nine other bidders for the 1,200-square-foot home in the sought-after neighborhood of Wells Branch.

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August 11, 2016

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