According to an article in Propertywire, while there are more, higher priced homes being put up for sale in the United States, there is still a shortage of lower-priced properties being listed.
Apparently buyers searching for new property will find a higher level of inventory overall, but the number of lower-priced homes being listed for sale is growing more slowly, compared to higher-priced property throughout most of the country. This is according to the latest home value Index from Zillow.
Since October 2013, median home values have increased by 6.4% and by 0.4% since September. Both annual and monthly home gain figures were far less than those recorded earlier in the year, and there are signs that home value growth is slowing while inventory levels are rising as the market begins to level and cool across the country.
This cooling has brought good news for buyers looking for less expensive property in some of the most expensive metro areas which include Los Angeles and the Bay Area and San Diego. The number of lower-priced homes on the market in San Francisco increased by 36%, but at the same time there were fewer higher-priced homes on the market. Although inventory levels were tight in San Francisco in October, properties were evenly spread across all price ranges.
Nationally, rents increased by 3.5% in October compared to a year earlier, but month on month rental values remain flat compared to September. The inventory levels of homes available throughout the nation increased by 15.8% year on year. When the figures are broken down they show housing at the bottom end of the market increased by 68.3%, while for houses in the top tier is increased by 82.2%.
In Denver, there were four times as many homes available for sale at the upper end of the market, meaning they were priced at $357,900 or more compared to homes at the lower end of the market that were available for less than $219,000. It was the same picture in other markets including Nashville, Phoenix, Atlanta and Dallas where at least twice as many homes for sale were in the top tier the market than in the bottom tier.
Out of the 35 metro areas analyzed, 25 showed more homes for sale this October compared to a year earlier right across all price ranges. In 14 metro areas the number of homes for sale saw double digit increases across all price tiers.