The MReport Webcast: Monday 11/24/2014

The nation's inventory of homes available for purchase saw a double-digit annual increase last month, but buyers looking for more affordably priced homes might find little reason to celebrate. In its latest market update, Zillow reported that the number of for-sale homes nationwide rose 15-point-8 percent year-over-year in October. While the increase may be welcome news for home shoppers in some of the country's most supply-starved metros, the number comes with a catch: The biggest gains were seen in the highest price tier of homes, leaving the most affordable price segment struggling to keep up.

The gap was greater in some of the country's biggest metros—like Denver, where there are almost four times as many homes available in the upper price tier than there are in the lowest segment. The picture looks similar in cities like Dallas, Atlanta, and Phoenix, which all have at least twice as many homes for sale in the top tier than in the bottom tier.

Home price gains skidded to a stop in September, putting a period on what had already been a slow third quarter for growth. Based on transaction data throughout the month, Black Knight Financial Services' Home Price Index recorded a 0.01 percent month-over-month decline. The drop follows meager increases in July and August. Throughout the entire third quarter, the index remained unchanged from its rounded-off total of $241,000. With the latest change, Black Knight says prices are 10.2 percent off their peak from June 2006, a slightly bigger gap compared to August.