Trulia recently released their quarterly Inventory and Price Watch report showing that U.S. housing inventory hit its lowest level on record in Q1 of 2017 with the number of homes on the market dropping for the 8th consecutive month (down 5.1% over the past year). The report is quarterly analysis of the supply and affordability of starter homes, trade-up homes, and premium homes currently on the market.
The number of starter and trade-up homes continues drop, falling 8.7% and 7.9% respectively, during the past year, while inventory of premium homes has fallen by just 1.7%
The persistent and disproportional drop in starter and trade-up home inventory is pushing affordability further out of reach of homebuyers.
A strong recovery may be partly to blame for the large drop in inventory some markets have experienced over the past five years.