“The overall market remains sluggish, but we’re seeing first-time home buyers exit, boosted by falling mortgage rates and a rising number of homes on the market,” said Sheharyar Bokhari, senior economist at Redfin. “Not only are there young families and investors looking for first-time homes, but there are also buyers forced to consider more affordable options due to near-record-high home prices. More buyers mean more sales, but so far we’re not seeing prices skyrocketing because the rising number of homes on the market is enough to meet the increased demand – a positive outcome for both buyers and sellers.”
The typical U.S. entry-level home sold for a record $250,000 in July, up 4.2 percent from a year ago, according to Redfin. That price increase was slower than in the mid- and high-end price ranges, which rose 4.6 percent and 5 percent, respectively. The number of entry-level homes on the market rose 18.9 percent year over year to the highest level since October 2022. At the same time, inventory in the mid- and high-end price ranges rose only 4.1 percent and 1.6 percent, respectively, according to the report.
Entry-level home sales increased the most in San Francisco, San Jose and Cincinnati and decreased the most in Fort Lauderdale, West Palm Beach and Phoenix. The total number of entry-level homes for sale increased the most in San Antonio, Fort Worth and Tampa, while only Milwaukee saw a decrease in active listings.
Entry-level homes sold the fastest in Seattle (seven days on average), followed by Montgomery County (Pennsylvania) and Warren County (Michigan). They sold the slowest in Fort Lauderdale, West Palm Beach and Miami, the report said.
