Starter and trade-up homes are vanishing from Denver, according to a report recently released by Trulia
Denver ranked seventh among cities with the largest decrease in starter home inventory. Starter home inventory in Denver dropped 77 percent from 2,321 homes during the first quarter of 2012 to just 534 during the first quarter of this year.
Nationally, the number of starter homes on the market dropped by 43.6 percent, and the number of trade-up homes on the market declined by 41 percent. Trade-up homebuyers will need to pay 2.6 percent more of their income for a home than in 2012.
"Rising prices is causing homebuyer gridlock," writes report author Ralph McLaughlin, Trulia's chief economist. "The growing price spread between premium homes and trade-up homes in some markets is highly correlated with fewer trade-up homes coming onto the market."
Contact Confluence Denver Development News Editor Margaret Jackson with tips and leads for future stories at firstname.lastname@example.org.