Trulia released a report in which they break down home inventory levels into thirds by price—starter, move-up, and premium levels. Here are their findings for the Denver market in the first quarter—
For homes in the bottom third of price (aka starter homes) inventory levels are down a whopping 26.7% to just 567 starter homes for sale from a year ago! And prices on these homes are up 14.9% from a year ago! Starter homes had a median list price of $267,933.
For homes in the middle third of price (move-up homes) inventory levels are down 8% to 905 listings and the median list price is up 8.6% from a year ago to $394,708.
For homes in the top price tier (premium homes) inventory levels rose 19.3% to 5,979 homes for sale. The premium sector has 80% of the homes for sale! The premium market had a median list price of $639,463, up just 0.7% in the last year.
People who own homes in the bottom 2 sectors are not moving and there are many reasons for this as I discuss in my Bubble class; but I think the biggest reason could be is they are scared they can’t find a new home. This is where my solutions in an earlier story can help you and your clients. If we can get more people in the upper price ranges of the move-up sector to move into the premium market, this would help greatly.