There are 42 percent fewer premium homes, (homes in the top one-third of the market, priced at $2.5 million or more), available in San Jose over the past year. Experts say this means higher prices and more competition for all homebuyers.
Oakland and San Francisco also were among the 10 cities grappling with the decrease in the latest Trulia study. Oakland’s inventory dropped 25 percent in the past year, and San Francisco’s fell 23 percent. Nationwide, the housing market saw a 6 percent drop in premium home inventory, the biggest decrease in more than four years, per The Mercury News.
Homes are now the most unaffordable since Trulia started keeping track in 2012, according to the report. Nationwide, first-time homebuyers would have to pony up about 40 percent of their monthly income to afford a median-priced starter home — nearly a third more than the recommended amount.
