According to a recent analysis from Redfin, starter homes are a bright spot in the housing market as mortgage rates settle near a 15-month low. In July, pending sales for starter homes—those priced in the 5th-35th percentile of the market—rose by 10.2% year over year, reaching their highest level since October 2022. This growth contrasts with declines in pending sales for middle-price homes (down 6.5%) and upper-price homes (down 10%).
The surge in starter home sales is partly attributed to falling mortgage rates, which have encouraged first-time homebuyers to enter the market. These buyers are more sensitive to rate drops due to smaller down payments and higher monthly payment impacts. Redfin’s Senior Economist, Sheharyar Bokhari, noted that increased inventory is helping meet demand without driving prices up, benefiting both buyers and sellers.
Source : https://bit.ly/3MoRJDm
By: Jon Iacono