Year-over-year as of Jan., 2016, the number of homes priced below $100,000 fell by 8.6 percent, as the less expensive homes got snapped up quickly, while the homes priced over $1 million grew by 15 percent, according to the National Association of Home Builders (NAHB), as mpamag informs MHProNews. The inventory of homes priced in between the two extremes decline the higher the price, as first-time home buyers are taking advantage of the continuing low mortgage rates.

A Phoenix real estate agent said a buyer looking at a $750,000 home had 45 to look at, but someone who wanted a $400,000 home only had three or four to check out. The NAHB noted the size of the average new home in 2015 increased to 2,720 square feet, as builders were reluctant to enter the starter home market.

As the more expensive home market stalls, said Barclay’s analyst Stephen Kim, builders will begin constructing lower-priced homes. ##

(Image credit: housingwire–housing slides)

Article submitted by Matthew J. Silver to Daily Business News-MHProNews.