What buyers want increasingly clashes with what’s for sale

Realtor.com highlights desperate need for entry level inventory

What buyers want increasingly clashes with what’s for sale

There’s a growing gap between the demands of buyers and the supply available to them according to a new Realtor.com study.

It found that half of buyers want a home priced below $288,000, $27,000 or 9.1% below the median price of homes currently listed for sale.

This finding is supported by April sales data from NAR showing that the median sales price was $246,000, some $48,000 or 15% below the inventory available on the market.  

And the Realtor.com study also reveals that the only price range where demand matches inventory is $340,000-$350,000; below and above there is imbalance.

"The price differences between what buyers are searching for, closing on, and what's available on the market demonstrates just how big the gap is for entry level home buyers," said Danielle Hale, chief economist for realtor.com®. "Buying a first home has always been a challenge, but with such a slim number of entry-level homes available, it's especially difficult now."

The gap between what buyers are looking to purchase and current available inventory can be attributed to the 4% year-over-year decrease in the pace of home sales so far in 2019, according to Hale.