The Truth Behind Starter Homes
What’s a Starter home and why you should buy one now?
A starter home is a house that is usually the first place which a person or family can afford to purchase, often using a combination of savings and mortgage financing. In the real estate industry the term commonly denotes small one-or two-bedroom houses, often older homes but sometimes low-cost new developments.
According to Trulia's Inventory and Price Watch report, the inventory for starter homes increases by 7 percent every year in the fall. Trulia considers the fall to run from October to the end of the December — also known as the fourth quarter. During this time, 70 of the largest 100 metro areas see their starter home inventory peak.
For starter homebuyers, an affordable price is typically a much more important factor. So, when inventory is low and prices are high, finding the right fit becomes much harder. When inventory spikes in the fall, the listing prices follow suit and move lower.