In the Terravita neighborhood in Scottsdale, there are more than two dozen homes up for sale. While that may seem like a lot for one community, overall, buyers are complaining across the country that there weren’t enough homes on the market in the spring to choose from. cnbc.com also reports that listings are “low and getting lower.”
Including Terravita Scottsdale, the National Association of Realtors says there were 2.14 million homes for sale at the end of April or roughly 4.6 months’ supply of inventory. Six months is considered a balanced market. While not the case at Terravita, some local markets are seeing less than one month’s supply.
While Terravita Scottsdale is not considered a start-up home neighborhood, the actual number of starter homes on the market in April dropped by 12.3% from the year before. Trulia says that pushed prices higher. Trulia also says the number of trade-up homes’ decreased by 11.5%.
"A lack of starter home affordability is becoming problematic in places outside of California," Trulia's chief economist Ralph McLaughlin wrote in the report. "Starter home affordability is down most in Oakland, CA, but is beginning to take a hit in Denver, Portland, Seattle, and central Florida."
It’s still a sellers market with home prices still rising, but the gains are shrinking. Redfin says one reason for that nationally is a shift of buyers moving away from pricey coastal markets and toward affordable markets such as the Midwest and South. Bottom line, though, is that competition is fierce across the country, including neighborhoods like Scottsdale’s Terravita.
"What's new in 2016 is that we're seeing the intensity of fast sales and bidding wars even in affordable markets like Grand Rapids and Omaha, where the typical home sold within two weeks last month,” said Redfin chief economist Nela Richardson.