Starter home sales during October were up by 4.9% from one year according to a new data report from Redfin. In comparison, home sales for mid-priced (+0.7%) and high-priced (+0.8%) residences were also up from one year earlier.
Among pending home sales, the starter tier recorded the biggest rise (+5.5%), followed by smaller increases for mid-priced (+1.4%) and high-priced (+1.1%) homes.
The typical starter home price rose 2% year-over-year to $260,000 in October, the second slowest growth in the past decade—trailing only April 2024 (+1.8%), when mortgage rates were above 7.5%. Redfin attributed the mild increase to a 13% surge in starter home inventory that helped keep prices under control
“The starter home market is a double-edged sword right now – conditions are improving, with more listings and steadier prices, but many buyers are only turning to this tier because they have been priced out of higher tiers,” said Redfin Head of Economic Research Chen Zhao. “That means sales at the low end of the market are relatively strong, but it also means that first-time buyers may find themselves competing with move-up or move-down buyers.”
