Inventory reaches 2018 high says Trulia

Tight inventories remain across many US markets and continue to lag 2017 levels but there are some exceptions.

The Inventory and Price Watch report from Trulia shows that inventory has reached its highest point for 2018 so far but is still 2.5% down nationally from a year ago.

But in some of the markets where affordability is lowest, inventory has started to rebound as high prices dampen sales.

In San Jose for example there has been a 66.9% increase in inventory year-over-year while Salt Lake City (45%) and Seattle (44.3%) also saw large increases.

“Home buyers may be pleasantly surprised to see more homes on the market, as housing inventory starts to make a comeback after years of decline," said Cheryl Young, Trulia’s senior economist. "While this is ultimately good news for frustrated buyers, years of steadily increasing prices mean that those hoping to buy a home will need to spend a bigger share of their income once they find one.”

Young added that even with the high prices there is reason to be cautiously optimistic as parts of the market start to ease.

Affordability is still an issue for all home segments
Trulia’s data shows that prices remain a challenge for many would-be buyers, even if they find more homes available.

For a starter home, buyers nationwide will need 25.6% of their income to afford a mortgage (up 3.3 percentage points year-over-year) while trade-up buyers will need 24.4% (up 2.3 pp) and premium buyers just 21% (up 1.3 pp).