BiggerPockets Daily Starter Home Sales Rise Despite the Rest of the Market Struggling
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Aug 1, 2025 Starter home sales have surged to a two-year high, rising 3.9% in June, even as other price tiers slump. The demand for entry-level homes reflects a growing desire for homeownership among younger buyers. The discussion delves into regional market variations and economic indicators driving these trends, highlighting the shifting dynamics of today's housing landscape. This unexpected surge may offer fresh opportunities for buyers, sellers, and investors alike.
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Starter Home Sales Rising Strong
- Starter home sales rose 3.9% year over year in June, hitting a two-year high while other tiers declined.
- This marks the 10th consecutive month of growth driven by rising inventory and demand from first-time buyers.
Rising Starter Home Inventory
- Active listings of starter homes jumped 19% year over year, reaching the highest June level since 2017.
- The increased supply gives first-time buyers more options but has only slowed, not reversed, price growth.
Prices Sticky Despite Inventory
- Median starter home price hit a record $260,000 in June, up 3.1% year over year with slower appreciation.
- Prices remain sticky or growing despite rising inventory, due to sellers holding firm on asking prices.