Inventory for home buyers across US at 20-year low

Anyone eager to buy a home this spring probably has reasons to feel good. The job market is solid. Average pay is rising. And mortgage rates, even after edging up of late, are still near historic lows.

And then there’s the bad news: Just try to find a house.

The national supply of homes for sale hasn’t been this thin in nearly 20 years. And over the past year, the steepest drop in supply has occurred among homes that are typically most affordable for first-time buyers and in markets where prices have risen sharply.

In markets like San Diego, Boston and Seattle, competition for a dwindling supply has escalated along with pressure to offer more money and accept less favorable terms.

“Sellers will have the edge again this year,” said Ralph McLaughlin, chief economist for Trulia, a real estate data provider. “Homebuyers are really going to be scraping the bottom of the barrel as far as housing choice is concerned.”

The intensity of the competition this spring has surprised even sellers like Kathleen Mulcahy, a 37-year-old product manager in Seattle.

Within a week of listing her one-bedroom, one-bath condo, Mulcahy received 21 offers — all above her asking price of $398,000. Most of the offers came with built-in triggers to automatically rise in case a rival bidder sweetened a bid. In the end, she accepted an offer of $500,000 — all cash.

“A lot more than I expected,” Mulcahy said.

Yet the changed landscape cuts both ways: Facing higher prices and competition herself, Mulcahy has decided for now to put off buying another home.

“There’s very little available, and it’s just too expensive right now, so I’m going to wait,” she said. “I’ll probably rent for two or three years.”

About 1.75 million homes were for sale nationally at the end of February, according to the National Association of Realtors. That’s down 6.4 percent from a year earlier and only slightly up from January, when listings reached their lowest point since the association began tracking them in 1999. All told, the supply of homes for sale has fallen on an annual basis for the past 21 months.

Among the factors that have fueled the decline in homes for sale:

— Since 2008, the average time homeowners have stayed in their houses before selling has doubled to nearly eight years, according to Attom Data Solutions.

— Many homeowners aren’t selling for fear they wouldn’t find a new home they would like and could afford. Some who had locked in ultra-low fixed mortgage rates may be reluctant to take on a new loan at a higher rate. Others may wish to sell but can’t because they own one of the 3

Mission nearly impossible this spring: Finding a home to buy

2 million homes worth less than what’s owed on their mortgage.

— Some homeowners own other properties they rent out and have little incentive to give up the steady rental income, especially while they’re also benefiting from rising home values.

— Investors, who typically keep properties for disproportionately long periods, own a larger share of houses. Between 2006 and 2016, the share of U.S. single-family houses and condos owned by investors averaged around 30 percent, according to Attom, and reached 35 percent last year.

Nor are builders replenishing the stock of new homes fast enough. Though the pace of building has been rising, it has yet to make up for years of sluggish construction growth that followed the housing bust. Builders complain that they can’t build more homes because of a lack of ready-to-build land, costly regulations and a chronic shortage of skilled construction workers.

“We’re building homes now at a 65 percent of the rate we have historically,” McLaughlin said. “The long-term solution to this scenario is building new homes.”

Despite the scant supply, U.S. home sales are expected to rise this year, economists say. Fueled by job growth, pay raises and still-low loan rates — and perhaps fearful of being left out as more homes are snapped up and prices rise further — many people are looking to buy.

Sales of previously occupied U.S. homes surged 5.4 percent in February from a year earlier, according to the NAR. In January 2016, 16.5 percent of the homes on the market were sold. This January, it was 19 percent, according to Trulia.

As prices have risen in response, so have the financial obstacles to homeownership. The median sales price has surged 7.7 percent from a year ago to $228,400, more than double the pace of average pay gains. And qualifying for increasingly expensive homes will become even harder should mortgage rates continue to rise this year, as many economists predict. The average rate on a 30-year, fixed-rate mortgage recently hit 4.1 percent; last year, it averaged 3.65.

The homes that are on the market are less affordable to a growing proportion of the population, according to research from Realtor.com. Entry-level buyers will likely have the most difficulty finding a home they can afford this spring.

Nationally, the supply of entry-level homes for sale has declined the most from a year ago — down 8.7 percent in the first quarter, according to Trulia. The supply of move-up homes is down 7.9 percent. By contrast, the supply of high-end homes has slipped just 1.7 percent from a year ago.

The coastal markets are among the tightest, reflecting years of declines in homes for sale. Seattle’s inventory is 20 percent lower than it was in the first three months of last year. It’s down 66 percent since 2012, according to Trulia.

But even many inland markets have only a limited supply of homes for sale. Three such metro areas experienced the sharpest drop in supply over the past year, according to Trulia: Dayton, Ohio (-29 percent); Gary, Indiana (-27.6 percent); and Minneapolis-St. Paul (-24.9 percent).

Some areas did buck the trend, including Miami, where inventory jumped this year by more than 43 percent.

But even in housing markets where the supply has grown over the past year, prices have risen briskly. Take Denver. Its inventory was up 6.5 percent in the first quarter. Yet it was still down 61 percent from its 2012 levels. That’s one reason why sellers there are fetching multiple offers.

On average, sellers are receiving five to seven offers this spring, said Stephanie Collins, a Redfin agent in Denver. She had one home this year that drew 15 offers. Another got 52.

Sellers are also persuading buyers to provide other enticements, like agreeing that a deal becomes official only after the seller finds another home.

“In our market,” Collins said, “you can’t just start at your price point and hope to get a good deal.”

Offering more money than the next bidder may not always work. Some sellers now expect buyers to waive some protections that have allowed buyers to cancel a deal without losing their deposit should some precondition not be met.

Examples include a professional home inspection to ensure that no major surprise repairs are needed, or requiring a seller to replace an older appliance, or asking for a final walkthrough of the property before finalizing the deal.

After months of looking for a home, Alaina Donofrio recently bought a 700-square-foot, one-bedroom house in Denver. Hoping to dissuade rival bidders, she agreed to pay $18,000 above the seller’s $308,000 asking price.

That wasn’t all she had to do.

Donofrio also surrendered the right to back out of the contract if a home inspection turned up any major problem. And she agreed not to ask the seller to make any repairs. She also pushed back the closing date to give the seller more time to move.

“Basically I’m buying it as-is,” said Donofrio, a 45-year-old database administrator. “It was really difficult to find something in the price range I wanted and where I wanted. It’s pure luck that it did.”

ad-high_impact_4
News
Las Vegas police investigate suspicious package at shopping center
Las Vegas police evacuated a southeast valley shopping center at Flamingo and Sandhill roads early Tuesday morning while they investigated reports of a suspicious package. (Max Michor/Las Vegas Review-Journal)
The Las Vegas Metro hosts the K-9 Trials
The Las Vegas Metro K-9 Trials returns to the Orleans Arena to benefit the Friends For Las Vegas Police K-9 group.
Kingman residents love their little town
Residents of Kingman, Ariz. talk about how they ended up living in the Route 66 town, and what they love about their quiet community. (K.M. Cannon/Las Vegas Review-Journal)
Service at Southern Nevada Veterans Memorial Cemetery
Twelve unclaimed veterans are honored at Southern Nevada Veterans Memorial Cemetery in Boulder City in Oct. 9, 2018. (Briana Erickson/Las Vegas Review-Journal)
Las Vegas house prices reach highest level in 11 years
Las Vegas house prices are rising But so is the amount of available homes on the market Still, properties priced below $300,000 are selling fast And September was the first time since June 2007 that the median house price reached the $300,000 mark Las Vegas home prices have been rising at one of the fastest rates in the country over the past year Recent data show the market is now less affordable than the national average
National Night Out
About 100 Summerlin residents gathered at Park Centre Dr. in Summerlin on Tuesday for National Night Out. Lt. Joshua Bitsko with Las Vegas Metro, played with 3-year-old David who was dressed as a police officer. Face painting, fire truck tours and more kept kids busy as parents roamed behind them. (Mia Sims/Las Vegas Review-Journal)
Rural homeless issue comes to a head in Pahrump
On Sept. 12, Pahrump sheriff deputies told residents of a homeless encampment on private property that they had 15 minutes to vacate and grab their belongings. That decision might face some legal consequences. (Rachel Aston/Las Vegas Review-Journal)
Remembrance blood drive on October 1
A blood drive was held at the Las Vegas Convention Center on the one year anniversary of the Oct. 1 shooting. (Mat Luschek/Las Vegas Review-Journal)
Remembrance Lights memorial unveiled at St. Rose hospital
A dedication ceremony was held at St. Rose to unveil a memorial and to read the names of those who died on October 1, a year ago. (Mat Luschek/Las Vegas Review-Journal)
1October Blood Drive Remembrance Wall
(Mat Luschek/Las Vegas Review-Journal)
1October Blood Drive
Vitalent hosts a blood drive at the Las Vegas Convention Center on Monday, Oct. 1, 2018, the first anniversary of the Las Vegas shootings. (Mat Luschek/Las Vegas Review-Journal)
1October sunrise remembrance ceremony in Las Vegas
Myanda Smith, sister of Las Vegas shooting victim Neysa Tonks, speaks at the sunrise remembrance ceremony at the Clark County Government Center in downtown Las Vegas, Monday, Oct. 1, 2018. (Chitose Suzuki/Las Vegas Review-Journal)
‪Gov. Brian Sandoval speaks to crowd at Oct. 1 sunrise remembrance ceremony ‬
‪Nevada Gov. Brian Sandoval speaks to the crowd at the Oct. 1 sunrise remembrance ceremony ‬at the Clark County Government Center in downtown Las Vegas, Monday, Oct. 1, 2018. (Michael Quine/Las Vegas Review-Journal)
Father of Route 91 Harvest festival shooting victim talks about college scholarship in his daughter's memory
Chris Davis, father of a Route 91 Harvest festival shooting victim, Neysa Tonks, talks about a college scholarship in his daughter's memory to assist the children of those who died in the shooting. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
Oct. 1 survivor Malinda Baldridge talks about life after the shooting
Malinda Baldridge of Reno attended the Route 91 Harvest festival with her daughter, Breanna, 17, and was shot twice in the leg when the gunman fired on the crowd.
Route 91 survivor talks about lack of progress in gun legislation
Heather Gooze, a Route 91 survivor, talks about lack of progress in gun legislation since the Oct 1. (Bizuayehu Tesfaye/Las Vegas/Review-Journal) @reviewjournal
Review held in death of man after encounter with Las Vegas police
The mother of Tashii Brown, who died after an encounter with Las Vegas police on the Strip, not satisfied after public review of evidence. (K.M. Cannon/Las Vegas Review-Journal)
Clark County Museum opening "How We Mourned: Selected Artifacts from the October 1 Memorials"
The Clark County Museum is opening an exhibit "How We Mourned: Selected Artifacts from the October 1 Memorials" of items left to honor the victims killed in the Route 91 Harvest festival shooting. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
Memorial service for former RJ lawyer Mark Hinueber
Mark Hinueber, the Review-Journal's former lawyer and defender of the First Amendment, died in Las Vegas on Aug. 23. Hinueber, who was 66, worked at the RJ and other newspapers for 42 years. On Saturday, his friends and family gathered for a memorial service.
Army veteran honored in Henderson event
Army Sgt. Adam Poppenhouse was honored by fellow veterans in an event hosted by a One Hero at a Time at the Henderson Events Center.
Michelle Obama and Keegan-Michael Key urge Nevadans to vote
Former first lady Michelle Obama and comedian Keegan-Michael Key urged Nevadans to vote at Chaparral High School in Las Vegas Sunday, Sep. 23, 2018. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Nevada Task Force One Cheers Golden Knights
Nevada Task Force One Cheers Golden Knights
1 dead, 1 wounded in North Las Vegas standoff
A woman was hospitalized with serious injuries on Thursday morning after being shot inside a North Las Vegas house. Police responded about 11 p.m. to a shooting at a home on the 5600 block of Tropic Breeze Street, near Ann Road and Bruce Street. The wounded woman, police believe, was shot by a man, who later barricaded himself inside the house. SWAT was called to assist, and when officers entered the house, they discovered the man dead from an apparent self-inflicted gunshot wound.
Las Vegas Teen Makes Clothing Resale His Side Hustle
Las Vegas resident Reanu Elises, 18, started buying and selling streetwear online when he was a high school junior. Like many other young adults, the world of online resale applications like Depop and Mercari have made selling clothing online for a profit easy. Now, Elises spends his free time at thrift shops looking for rare and vintage clothing he can list on his on his shop. Now in his freshman year at UNLV as a business marketing major, Elises hopes to open a shop of his own one day and start his own clothing brand. He estimates that he's made about $1000 from just thrifted finds in the past year, which he'll use to buy more thrift clothing and help pay for expenses in college. (Madelyn Reese/ Las Vegas Review-Journal) @MadelynGReese
Fruition Vineyards Encourages Young Entrepreneurs to "Buy, Flip, Dream"
Once a month, young adults gather at Fruition Vineyards on South Maryland Parkway near UNLV to dig through a stack of rare, vintage and designer clothing that's marked down well below it's resale value. Shop founder Valerie Julian began the vent, dubbed "Fruition Vineyards" in August after running her streetwear shop since 2005. The event gives young entrepreneurs the opportunity to "buy, flip, dream" according to Jean. Meaning that they're encouraged to buy the clothing for sale and find a way to resell it for a profit, then reinvest that into whatever dream they pursue: college, a hobby or their own resale business. Shoppers lined up starting an hour before noon on the last Saturday in April for the opportunity and spoke about what they hoped to do with their finds and profits. (Madelyn Reese/Las Vegas Review-Journal) @MadelynGReese
Local man goes under cover searching for answers to homelessness
Licensed mental health therapist Sheldon Jacobs spent 48 hours under cover posing as a homeless man in an attempt to gain perspective on the complex issue.
Social Work UNLV Lecturer's Calling
Ivet Aldaba-Valera was the first person in her family to graduate from both high school and college. The 33-year-old UNLV lecturer is now pursuing her Ph. D in public policy at the school and has used her degree in social work to engage with the young Latino and Latina community of Las Vegas. (Madelyn Reese/Las Vegas Review-Journal) @MadelynGReese
The world's longest racetrack could be coming to Pahrump
Spring Mountain Motor Resort and Country Club in Pahrump might be the first racetrack in the world longer than 16 miles long once the expansion is complete. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Gold Point townsperson talks about why he choose to live in a ghost town
Gold Point townsperson Walt Kremin talks about the ghost town in Nevada he calls home. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Search for missing 3-year-old boy at Sunset Park
Las Vegas police and Red Rock Search and Rescue team search for a missing child at Sunset Park in southeast Las Vegas on Sunday, Sept.2, 2018. (Chitose Suzuki/Las Vegas Review-Journal)
Business
Bellagio, MGM Resorts International’s luxury hotel turns 20
The more than 3,000-room Bellagio hotel is situated on the site of the former Dunes Hotel. The Dunes was imploded in 1993, and construction of the Bellagio started in 1996. It cost $1.6 billion to build, making it the most expensive hotel in the world at the time. The Bellagio was former Wynn Resorts Ltd. Chairman and CEO Steve Wynn’s second major casino on the Strip after The Mirage. MGM Resorts International acquired the property from Steve Wynn in 2000. (Tara Mack/Las Vegas Review-Journal)
Facial recognition software at G2E – Todd Prince
Shing Tao, CEO of Las Vegas-based Remark Holdings, talks about his facial recognition product. (Todd Prince/Las Vegas Review-Journal)
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Bobby Baldwin to leave MGM
MGM Resorts International executive and professional poker player Bobby Baldwin is set to leave MGM.
Caesars has new armed emergency response teams
Caesars Entertainment Corp. has created armed emergency response teams. They are composed of former military and law enforcement officials. "These teams provide valuable additional security capabilities,” Caesars spokeswoman Jennifer Forkish said. Caesars is hiring Security Saturation Team supervisors, managers and officers, according to LinkedIn. The company did not say how many people it plans to hire for the units. (Las Vegas Review-Journal)
Las Vegas, airlines prepare for CES
CES in January is expected to attract more than 180,000 attendees. (Las Vegas Review-Journal)
AGS partners with Vegas Golden Knights
AGS is the nation’s second-largest manufacturer of Class II slot machines used primarily in tribal jurisdictions. It announced a marketing partnership with the Vegas Golden Knights NHL team. (Las Vegas Review-Journal)
Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
A Walk Through Circus Circus
It only takes a short walk through Circus Circus to realize it attracts a demographic like no other casino on the Strip: families with young children. (Todd Prince/Las Vegas Review-Journal)
Morphy Auctions, a vintage slot machines seller, wants gaming license
Vice president Don Grimmer talks about Morphy Auctions at the company's warehouse located at 4520 Arville Street in Las Vegas on Thursday, Aug. 16, 2018. (Rick Velotta/Las Vegas Review-Journal)
Nevada's venture capital money doesn't stay in state
Zach Miles, associate vice president for economic development for UNLV, said there’s venture money in Southern Nevada, “but trying to find the right groups to tap into for that money is different.” According to a 2017 report from the Kauffman Foundation, Las Vegas ranked number 34 out of 40 metropolitan areas for growth entrepreneurship, a metric of how much startups grow. With a lack of growing startups in Las Vegas, investment money is being sent outside of state borders. The southwest region of the U.S. received $386 million in funding in the second quarter, with about $25.2 million in Nevada. The San Francisco area alone received about $5.6 billion. (source: CB Insights)
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
Motel 8 on south Strip will become site of hotel-casino
Israeli hoteliers Asher Gabay and Benny Zerah bought Motel 8 on the south Strip for $7.4 million, records show. They plan to bulldoze the property and build a hotel-casino. Motel 8 was built in the 1960s and used to be one of several roadside inns on what's now the south Strip. But it looks out of place today, dwarfed by the towering Mandalay Bay right across the street.
Project billed as one of the world's largest marijuana dispensaries plans to open Nov. 1
Planet 13 co-CEO Larry Scheffler talks about what to expect from the new marijuana dispensary, Thursday, July 19, 2018. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Oasis Biotech opens in Las Vegas
Brock Leach, chief operating officer of Oasis Biotech, discusses the new plant factory at its grand opening on July 18. (Bailey Schulz/Las Vegas Review-Journal)
UNLV Tech Park innovation building breaks ground
Construction on the first innovation building at the UNLV Tech Park is underway. (Bailey Schulz/Las Vegas Review-Journal)
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like