There isn’t enough inventory in Washington, D.C. to keep up with demand. This is according to Trulia, who reported that inventory across the nation has fallen for the past eight consecutive quarters. Over the past year, the number of homes on the market in the U.S. fell 5.1 percent.
From January 1, 2012 to January 1, 2017, the number of starter and trade-up homes fell 8.7 percent and 7.9 percent, respectively. For premium homes, the number decreased by 1.7 percent.
Compared to this time last year, homebuyers of starter and trade-up homes have to spend 2.9 percent and 1.6 percent more, respectively, to nab a listing. Premium homebuyers only need to pay 0.9 percent more.
When looking at Washington, D.C. between January 1, 2012 to January 1, 2017, Trulia reported that the median listing price for a starter home rose 43.39 percent. For a trade-up home, the median listing price grew 25.74 percent. Finally for a premium home, the median listing price increased by 25.35 percent.
During the same time frame, the inventory for starter, trade-up, and premium homes dropped by 42.31 percent, 25.72 percent, and 11.56 percent, respectively. When looking at the entire inventory as a whole, the number dropped 27 percent.
Now, the median income needed to buy a median-priced starter home is $40,454, while for a trade-up home the number totals $98,040. For a premium home, the median income needed is $198,454.
Compared to this time last year, homebuyers of starter homes have to spend 0.15 percent more. Buyers of both trade-up and premium homes have to pay 0.1 percent more.
To compile this data, Trulia looked at the number and share of inventory of homes, the change in share and number of these homes, and the affordability of those homes for each type of buyer, whether that be starter, trade-up, or premium.
Photo via NCinDC