The starter home inventory in the DC area continues to drop.
A recent Trulia report shows that last year the number of starter homes in the DC area market had the smallest increase of three sub-sectors -- starter, trade-up and premium homes -- with the stock of starters rising by just 8.6 percent. Consequently, starter homes are a smaller share of the overall market, dropping year-over-year from 29.7 percent of the supply to 25.5 percent.
The median price for starter homes also increased by 9.3 percent year-over-year, hitting $235,000 and requiring buyers to spend 35.8 percent of their income on housing compared to 32 percent in the first quarter of 2017. Buyers of trade-up and premium homes have spent a relatively steady share of their income on housing, at 23.4 percent and 12.9 percent respectively.
For DC-area buyers, the median listing price for starter homes increased from $149,930 in 2012 to $235,000 in 2018 while the quantity of starter homes decreased from 5,455 to 3,417 over the same period. Further constraining the availability and affordability of starter homes on the market for first-time buyers is the prevalence of fixer-uppers on the market, putting these buyers in competition with investors or requiring funds beyond the purchase price to pay for extensive repairs.
Trulia defines starter, trade-up and premium homes based on an estimate of the home value of aggregate housing stock, which is then divided into three sectors. Affordability is calculated based on median household income terciles and what it would require to purchase the median-priced home associated with that tercile.
This article originally published at http://dc.urbanturf.com/articles/blog/more-starter-homes-are-fixer-uppers/13741
Most Popular... This Week • Last 30 Days • Ever
Approximately 16,550 units delivered in DC between January 2019 and August 2021.... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
The seven-bedroom home hit the market on Friday and was under contract by Sunday.... read »
This year will likely go down as the year that prices for houses in DC reached new he... read »
Dubbed OZMA, the 13-story project will include roughly 7,900 square feet of ground fl... read »
The preferred mortgage product among most home buyers is the fixed-rate mortgage. How... read »
STAY DC provides rental aid and utility payment grants to at-risk District residents ... read »
The planned 8-unit development would be located on K Street right along the Potomac R... read »
Landmark Theatres is in the final stages of negotiations that would have it operating... read »
The 12,000 square foot replica of 1600 Pennsylvania Avenue went under contract last w... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro